What's Happening?
Marks & Spencer (M&S) has reported a robust performance for the third quarter, primarily driven by strong food sales. The company's trading statement for the 13 weeks ending December 28, 2025, shows group
sales reaching £4.99 billion, marking a 24.2% increase year-on-year. This growth was significantly bolstered by the consolidation of Ocado Retail. Excluding Ocado, M&S's group sales rose by 3.3%. The food division was a standout performer, with sales up 6.6% and like-for-like growth of 5.6%. M&S's investment in value ranges and innovation, coupled with effective execution during the festive period, contributed to this success. However, the Fashion, Home & Beauty division saw a decline in sales by 2.5%, attributed to reduced high street footfall and recovery from a cyber-attack earlier in the year. International sales increased by 0.9%, and Ocado Retail grew by 13.7%, with M&S products making up about 30% of Ocado.com sales.
Why It's Important?
The strong performance of M&S's food division highlights the company's strategic focus on value and innovation, which has resonated well with consumers, especially during the festive season. This growth positions M&S as a leading grocer in the UK, with a record market share of 4.0% in November. The results underscore the importance of the food sector in M&S's overall business strategy, particularly as other divisions like Fashion, Home & Beauty face challenges. The integration with Ocado Retail has also proven beneficial, expanding M&S's reach in the online grocery market. This performance is crucial for M&S as it continues to reshape its business model, focusing on digital experiences and quality offerings.
What's Next?
Looking forward, M&S plans to accelerate its investment in value, quality, and digital experiences as it enters 2026. The company remains ambitious and focused on reshaping its business to adapt to changing consumer preferences and market conditions. M&S's full-year guidance remains unchanged, indicating confidence in its strategic direction. The company will likely continue to leverage its partnership with Ocado to enhance its online presence and capitalize on the growing demand for online grocery shopping.
