How Does Marks & Spencer Group Company Work?

The M&S Food division is distinguished by its focused own-label range and integrated supplier relationships. In 2023/24, over 1,000 products were upgraded and 1,300 new lines were introduced, demonstrating a commitment to continuous innovation. The company invested £60 million in pricing in 2023/24, with its 'Remarksable Value' range experiencing 34% sales growth.

For Clothing & Home, M&S has strategically reduced its product portfolio to offer fewer items in greater volumes. This approach is supported by enhanced gross margins and a program aimed at structural cost reduction.

A key strategic objective for M&S is the modernization of its supply chain. Investments are being made in automation, such as at its Bradford warehouse, and system upgrades for Clothing & Home to improve stock visibility, replenishment, and reduce excess inventory.

M&S operates a significant network of physical stores in the UK and internationally, alongside a growing digital presence. The company is actively engaged in a store rotation program, aiming for 180 higher-productivity full-line stores and an expansion of food stores to 420 by fiscal 2028.

The company has achieved 12 consecutive quarters of sales growth in its Food and Clothing & Home divisions. This sustained growth, coupled with three consecutive years of increased sales, profit, and market share by March 2025, highlights the effectiveness of its strategic direction.

Acquiring logistics firm Gist in 2023/24 was a key move to enhance control over its food distribution network. Simultaneously, the ongoing store rotation program, targeting 180 enhanced full-line stores and 420 Food stores, is a critical initiative for improving the customer experience and driving sales.

The company faced a significant cyber-attack in April 2024, with an estimated cost of £300 million by March 2025, impacting online operations and product availability. In response, M&S has accelerated digital investments to bolster infrastructure and supply chain resilience.

M&S leverages its strong brand reputation for quality and trustworthiness, particularly in its own-brand food offerings, which fosters significant customer loyalty. An efficient supply chain, enhanced by the Gist acquisition, and in-house product development are central to maintaining consistent quality.

Marks & Spencer Group has solidified its standing in the UK retail market. For the 52 weeks ending March 2024, its food market share reached 3.7% in stores, and 4.2% when including online sales through partners. In clothing, the company's market share grew to 10.0%.

The company navigates a competitive landscape marked by price-led discounters and evolving consumer habits. Economic pressures and supply chain disruptions, such as the April 2024 cyber-attack, present ongoing challenges to its operations and revenue streams.

Marks & Spencer Group is investing between £600 million and £650 million in capital for 2025/26 to support its 'Reshaping for Growth' program. This investment aims to bolster supply chains, enhance digital capabilities, and optimize its store portfolio.

The company's 'Plan A 2025' initiative underscores a commitment to sustainability, targeting net-zero emissions by 2040 and sourcing all raw materials sustainably by 2025. Leadership expresses optimism for future opportunities through continuous innovation.