Business

M&S tops UK food retail growth charts in last quarter

Earnings outlook upgraded for second time in year

Last month M&S, which also sells clothing and homeware, beat forecasts for first-half profit and upgraded its earnings outlook for the second time this year, sending its stock soaring on bets that one of Britain’s most elusive turnarounds could finally materialise.

Tue Dec 14 2021 - 11:11

Marks & Spencer was Britain’s fastest growing food retailer in the 12 weeks to December 4th, market researcher NielsenIQ said on Tuesday, providing more evidence the group’s latest turnaround plan is delivering.

NielsenIQ said M&S’s sales rose 9.1 per cent in the period year-on-year, outpacing German-owned discounters Lidl and Aldi, which recorded growth of 8. per cent and 4.6 per centrespectively.

They were the only three retailers to grow sales against the same period last year.

Market leader Tesco was the best performing of the so-called big four grocers, with its 0.7 per cent sales decline significantly outperforming Sainsbury’s, Asda and Morrisons, who recorded declines of 4.6 per cent, 4.2 per cent and 5.6 per cent respectively.

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Comparative numbers were tough as in the same period last year Britain was in Covid-19 lockdown.

Rival market researcher Kantar does not include M&S in its monthly reports.

Last month M&S, which also sells clothing and homeware, beat forecasts for first-half profit and upgraded its earnings outlook for the second time this year, sending its stock soaring on bets that one of Britain’s most elusive turnarounds could finally materialise. Its shares are up more than 70 per cent so far this year.

NielsenIQ said total UK till grocery sales fell 2.5 per cent in the four weeks to December 4th year-on-year.

However, it said spending has picked-up with sales down just 0.9 per cent in the first week of December.

The researcher forecast British shoppers would spend £6.8 billion (€8 billion) at supermarkets in the two weeks to December 24th.

It said British shoppers were seeking to treat themselves to more premium and higher value items this Christmas, with the average value of the shopping basket running 2.6 per cent higher this year. – Reuters

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