High street retailer Marks & Spencer has reported a growth in third quarter sales as its Clothing & Home division experienced an uptick of almost 9%.
According to its latest trading update for 13 weeks ended 31 December 2022, total group sales were up 9.9% to £3.6bn against the same period last year, with like-for-like sales up 7.2% in the UK.
M&S said Food sales rose 10.2% to £2.1bn, while Clothing & Home sales were up 8.8% to £1.1bn with like-for-like sales up 8.6%.
“Store sales increased 12.8% with standout early performances from new stores such as Colchester and Chesterfield which are part of the store rotation programme. Online sales increased 0.7%, driven by growth of 33% through the M&S App, with a strong performance of click and collect sales,” M&S said.
Stuart Machin, Chief Executive added: “M&S sustained trading momentum through the peak quarter and both Food and Clothing & Home have delivered strong growth.
“M&S Food outperformed the market on volume and value in the critical four-week Christmas period for the second year running and reached its highest ever recorded market share. Clothing and Home delivered another outstanding performance, maintaining its market leadership position with its highest market share in seven years.
“This outperformance was driven by M&S doing what it does best; exceptional product at value you can trust. Thanks to our unrivalled quality, innovation and growing style credentials, more customers shopped with M&S over the Christmas period than in recent years. I would like to thank all our colleagues for the fantastic service they delivered.
“We saw the benefits of the acceleration in the steps we’re taking to reshape M&S as an omnichannel retailer supported by an increasingly promising store rotation programme. Our new full line and renewal stores outperformed expectations, while click and collect orders increased 20%, and the competitive advantage of M&S’s omnichannel platform was demonstrated by delivering c.50% growth in third party brand sales. This was supported by substantial growth in monthly active App users to c.5m.
“Given the inflationary pressures impacting our customers and our business, M&S is taking action to structurally reduce costs and reinforce our customer proposition. Our singular focus is on delivering the M&S Reshaped programme to drive growth and value creation as the UK’s leading omnichannel retailer. This performance across both our businesses provides confidence in delivering our full year results.”
