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  • Profit earlier than tax & adjusting gadgets of £482.0m (2021/22: £522.9m, together with £59.8m UK enterprise charges aid)
  • Statutory revenue earlier than tax of £475.7m (2021/22: £391.7m)
  • Clothes & Residence sales1 up 11.5% to £3.72bn; Retailer gross sales up 14.9%, on-line up 4.8%; Robust progress in Click on & Accumulate
  • Clothes & Residence adjusted working revenue £323.8m (2021/22: £330.7m, together with £35.2m charges aid)
  • Meals gross sales up 8.7% to £7.22bn. Robust progress throughout core classes, hospitality and franchise
  • Meals adjusted working revenue £248.0m (2021/22: £277.8m, together with £24.6m charges aid)
  • Ocado Retail share of loss £29.5m (2021/22: share of revenue £13.9m); capability for future progress
  • Worldwide fixed foreign money gross sales up 11.2%; adjusted working revenue £84.8m (2021/22: £73.6m)


Reshaping M&S to ship long run progress

  • Clothes & Residence delivering improved model perceptions and a sustained main worth place
  • Meals quantity outperforms market; reflecting product innovation and worth funding
  • Ocado Retail reset underway; restoring main service credentials and deeper collaboration with M&S
  • Structural price discount programme delivering; over £150m of financial savings deliberate for FY24
  • Accelerating retailer rotation; 8 full-line and 10 Meals shops opening in FY24
  • Progress on provide chain modernisation; Gist acquisition accomplished, integration on observe
  • Strong steadiness sheet and cashflow; maintained funding grade metrics; additional bond repurchase introduced
  • Plan to revive dividend in FY24


Stuart Machin, Chief Govt stated:
“One yr in, our technique to reshape M&S for progress has pushed sustained buying and selling momentum, with each companies persevering with to develop gross sales and market share.

Our Meals and Clothes & Residence companies invested in worth to guard prospects from the complete power of inflation which, while impacting margin, was the appropriate factor to do, as serving our prospects effectively is the one path to delivering for our shareholders.

Meals outperformed the market, with buyer notion for high quality and worth the very best in six years. The advantages of the Gist acquisition and operational efficiencies additionally supported an improved efficiency within the second half. Clothes & Residence retained market-leading worth notion, and its model credentials proceed to enhance. Gross sales had been up in retailer and on-line, supported by progress in Click on and Accumulate gross sales, energetic App customers and Sparks loyalty membership; demonstrating the rising energy of our omni-channel mannequin.

The shop rotation and renewal programme delivered robust gross sales uplifts and can speed up this yr, together with the opening of 5 model defining full-line shops in main cities. Our disciplined method to capital allocation means we are able to make investments for progress, whereas additional lowering internet debt and sustaining funding grade credit score metrics, and we plan to renew dividend funds at our interim outcomes.

M&S is such a particular enterprise with a lot potential, and I need to thank all of my colleagues for his or her contribution to those outcomes. Delivering efficiency and driving change is everybody’s accountability at M&S, and so they have performed a exceptional job. Regardless of dealing with important headwinds, I’m inspired by the robust foundations established final yr and enthusiastic about what we are able to obtain within the yr forward.”


Non-GAAP measures and different profit measures (APMs) are mentionedinside this launch. A glossary and reconciliation to statutory measures is suppliedon thefinish. Adjusted outcomes are according to how enterpriseefficiency is measured internally and introducedto assist comparability. Consult with adjusting gadgetsdeskunder for additionalparticulars. 1 References to ‘gross sales’ all through this announcement are statutory income plus the gross worth of consignment gross sales ex. VAT.



M&S delivered robust leads to 2022/23 regardless of important inflationary price headwinds impacting margins, reflecting the advantages of its programme to reshape for progress. Revenue earlier than tax and adjusting gadgets for the interval was £482.0m (2021/22: £522.9m). Statutory revenue earlier than tax was £475.7m (2021/22 £391.7m). Prior yr outcomes included £59.8m of UK enterprise charges aid and a internet charges cost of £139.7m in contrast with a internet charges cost of £186.6m in 2022/23.

  • Clothes & Residence grew gross sales 11.5% with LFL gross sales up 11.2% pushed by a extra assured method to purchasing and a concentrate on the trendy mainstream buyer, which is beginning to drive higher model perceptions. Whereas retailer gross sales outperformed, on-line gross sales had been additionally up, with progress in Click on and Accumulate gross sales, energetic App customers and Sparks loyalty membership.  Quantity and worth market shares elevated.
  • Meals grew gross sales 8.7% with LFL gross sales up 5.4%, outperforming the market in quantity and worth phrases with broadened enchantment, by means of targeted product improvement and funding in trusted worth. Whereas funding in worth lowered margin, the optimistic buyer response supported the supply of improved buying and selling efficiency within the second half. Margin within the second half additionally benefitted from the acquisition of Gist.
  • Worldwide gross sales had been up 11.2% at fixed foreign money, pushed by demand for clothes from world companions. Consequently, earnings recovered regardless of the mixed impacts of the exit from Russia and on-going EU border associated prices.
  • Ocado Retail gross sales had been down 1.2%. Whereas energetic prospects grew, revenues mirrored lowered volumes because of decrease buying frequency post-pandemic.  Profitability was impacted by the results of upper mounted prices from under-utilised capability, the impression of which we’re working collectively to scale back, as we construct buyer numbers over time.



M&S has a heritage of high quality, model, innovation and worth for cash, not too long ago leading to it being voted the UK’s most trusted model (supply: YouGov).  After numerous years of considerable change and funding, a strengthening omni-channel place in Clothes & Residence and the broader attain of Meals together with by means of the Ocado Retail three way partnership, present alternatives for worthwhile progress.

Through the yr, the brand new management crew, Stuart Machin, CEO, supported by Katie Bickerstaffe as his Co-CEO, set out their priorities to ship sustainable progress. To help implementation of the plan, Stuart appointed Jeremy Townsend to the crew as CFO in January 2023, and he’ll stay with the enterprise till Might 2025.

This assertion studies supply in opposition to this plan, setting out how these priorities will ship worthwhile gross sales progress, enhance working margins, present funding decisions and drive shareholder returns. The 9 priorities are set out in additional element under.

  1. Growing distinctive product worthy of a trusted model, by means of funding in nice tasting, worth for cash, high quality Meals, and creating trendy, nice worth, high quality Clothes and Residence ranges.
  2. Driving omni-channel progress.  Rising the participation of Clothes & Residence on-line gross sales, by means of leveraging the nationwide retailer and distribution community, to supply a handy and constant service nonetheless and wherever prospects select to buy.  And rising utilisation of Ocado Retail’s capability, by offering superior service, market-leading alternative and M&S merchandise.
  3. Capitalising on the power of the M&S model to develop world gross sales by means of capital mild partnerships and the event of a multi-platform on-line enterprise.
  4. Making £400m of structural price financial savings over 5 years, lowering price to serve, and rising our margins by means of know-how enhancements to extend retail and provide chain effectivity and simplified and streamlined digital, know-how and help centre capabilities.
  5. Making a high-performance tradition. A less complicated, quicker, supply targeted enterprise which is keen about M&S merchandise, places the shopper first and has the digital ability set to make quick, knowledgeable selections.
  6. Accelerating retailer rotation and renewal to create a extra productive property of c.180 full-line shops and opening greater than 100 new Meals shops positioned in progress areas, which help omni-channel retailing.
  7. Modernising the availability chain to enhance availability and customer support, whereas lowering prices and dealing capital.
  8. Making a extra participating and related buyer expertise to drive omni-channel progress. This brings collectively the Sparks loyalty programme and fee choices, supported by an efficient and extra environment friendly know-how infrastructure.
  9. Disciplined capital allocation, to strengthen the steadiness sheet, reinstate an funding grade score for our debt and restore dividends. Strong liquidity and steadiness sheet metrics permit for an extra bond repurchase train of c.£225m in respect of our medium-term maturities, additionally introduced at present.



M&S has had begin to the brand new monetary yr, with each Meals and Clothes & Residence rising gross sales. Whereas the financial outlook for shopper spending is unsure, price inflation stays excessive, and market circumstances are anticipated to turn out to be more difficult, the technique is starting to ship improved efficiency and there stays a lot throughout the Group’s management.

In FY24, modest progress is predicted in revenues, pushed by omni-channel in addition to from the advantages of the accelerating retailer rotation plan.  Additional funding in high quality and trusted worth will likely be partly offset by actions to mitigate sourcing price pressures and to scale back waste and inventory loss.

Value inflation contains over £50m of vitality prices in addition to colleague pay will increase of greater than £100m, that are anticipated to be offset by the supply of over £150m of in-year financial savings from the structural price discount programme.  This offers scope to spend money on customer support and digital improvement, whereas controlling prices.

Regardless of dealing with important headwinds, we’re inspired by the robust foundations established final yr.



The Group suspended dividend funds at the beginning of the pandemic to guard the steadiness sheet. This enabled it to spend money on its transformation priorities and trusted worth. With the enterprise producing an improved working efficiency and having a strengthened steadiness sheet with credit score metrics according to funding grade, the Board plans to revive a modest annual dividend to shareholders, beginning with an interim dividend on the leads to November.


M&S’ objective is to ship worthwhile long-term gross sales progress by means of creating distinctive product and a trusted model, providing a number one omni-channel retail expertise together with by means of Ocado Retail and increasing the worldwide attain of the enterprise.


The target for Meals is to attain 1% progress in market share and an adjusted working margin of c.4% over the following 5 years.  This will likely be delivered by means of ‘defending the M&S magic’ of trusted worth and innovation in contemporary, easy-to-cook meals, whereas fixing the spine processes of the availability chain and driving progress within the retailer property.

Meals grew gross sales 8.7% to £7.22bn with LFL gross sales up 5.4%, with notably good progress in hospitality and franchise. Gross sales in core classes had been up c.5.0% and effectively forward of pre-Covid ranges, reflecting the technique to broaden enchantment. Grocery market share elevated 20bps to three.6%, with M&S outperforming all main full-line supermarkets. (supply: Kantar 52 w/e 19 March 2023).

Working revenue earlier than adjusting gadgets of £248.0m in contrast with £277.8m within the prior yr (which included £24.6m of enterprise charges aid), leading to a internet adjusted working margin of three.4%.

Whereas funding in worth lowered margin within the first half, as we didn’t cross by means of the complete impression of price inflation to prospects, the ensuing optimistic impact on buyer volumes drove gross sales. Mixed with an in-year contribution to working revenue from the Gist acquisition of £27m, this enabled a rise in second half adjusted working margin to 4.5%, in contrast with 3.8% final yr.

Development underpinned by funding in trusted worthLately, Meals has shifted to trusted worth to broaden enchantment, lowering the quantity of promotions and turn out to be aggressive at opening worth factors. At a time when prospects’ focus is on the price of residing, additional funding was made early within the yr, which meant that the enterprise didn’t cross by means of the complete impression of price inflation on its margins. This included:

  • Sharpening the costs of over 100 ‘Remarksable worth’ traces which supply M&S high quality at on a regular basis costs, implementing ‘locked costs’ throughout a spread of c.150 on a regular basis household favourites and shifting the long-lasting ‘Dine-In’ provide to ‘At all times On’ – providing an reasonably priced, restaurant-quality different to consuming out; and
  • Consequently, the combination of worth traces elevated. As an example, Remarksable gross sales had been up 40%, and featured in over c.20% of buyer baskets.  Dine-In launches corresponding to ‘steak and chips’ additionally drove substantial gross sales progress within the provide.

Efficiency fuelled by innovation and funding in basket constructingclasses: The innovation pipeline helped to extend gross sales of contemporary classes throughout the yr and ambient merchandise over Christmas, Valentine’s and Mom’s Day when occasion gross sales grew by an estimated 20%. Product launches included:

  • A programme of high quality upgrades with M&S profitable c.200 ‘tried and examined’ awards from titles corresponding to Good Housekeeping.  As an example, the introduction of Oakham™ Gold rooster implies that all of the contemporary rooster offered is now slower-reared, British and RSPCA Assured;
  • Robust seasonal launches such because the ‘grasp grill’ vary for summer season barbeques and Restricted Editions for key occasions; and
  • Reset and relaunched ranges geared toward driving market share in bigger baskets together with smooth drinks, family cleansing, frozen desserts, and cereals.

High quality and worth perceptions highest in six years: M&S continues to generate market-leading high quality and sustainability perceptions in Meals, whereas the continued technique of funding in trusted worth has pushed improved perceptions of worth.



The target for Clothes & House is to ship a 1% improve in market share and an adjusted working margin of c.10% over the following 5 years, by driving omni-channel progress of a classy, high quality, worth for cash M&S vary, alongside a household of companion manufacturers.

Clothes & Residence grew gross sales 11.5% to £3.72bn with LFL gross sales up 11.2%. Full worth sell-through at 88% was degree with final yr and effectively above historic ranges. Clothes & Footwear market share elevated 30bps to 9.3%. (supply: Kantar 52 w/e 2 April 2023)

Retailer gross sales elevated 14.9% to £2.5bn with power in metropolis centre and buying centre areas. On-line grew 4.8% to £1.2bn, with robust progress in Click on and Accumulate gross sales, which had been up c.20%, with multiple third of orders now generated by means of the M&S App.

Working revenue earlier than adjusting gadgets of £323.8m in contrast with £330.7m within the prior yr (which included £35.2m of enterprise charges aid), a rise of 9.6% excluding the impression of enterprise charges.  Adjusted working margin of 8.7% is now c.170bps above 2019/20. General outcomes mirrored the leverage from gross sales progress offsetting price pressures, notably from sourcing and foreign money as we didn’t cross by means of the complete impression of price inflation to prospects and from deliberate digital investments.

Model credentials enhancing with extraassuredshopping for: A extra assured method to purchasing, and concentrate on the trendy mainstream buyer, is beginning to ship elevated worth for cash and elegance perceptions.

  • Clothes & Residence has targeted on shopping for extra deeply into core traces, and providing clearer worth factors and higher availability. As an example, girls’s denim gross sales have grown over a number of years, cementing M&S’ main market share within the class, which has elevated to 13% from lower than 10% two years in the past.
  • Better funding has been made into classes which drive model notion. For instance, informal gown gross sales grew 40% in 2022/23. Because the power of demand turned obvious, elevated purchases of common traces had been made utilizing brief lead-time provide routes, assembly demand whereas managing markdown threat.
  • The improved vary is supported by digital analytics to evaluate profitability per choice extra precisely. As well as, availability is being measured and inventory is being allotted on a requirement weighted foundation.

Robustefficiency of occasionassociatedclasses: In a yr when prospects had been profiting from the return of occasions, weddings and holidays, progress was generated in high finish ‘Autograph’ gross sales whereas making additional progress in informal put on.

  • Males’s ‘Autograph’ gross sales elevated c.60% whereas chino gross sales elevated c.25%, reflecting the technique to construct a “good separates” enterprise for workwear. A spotlight within the present yr is on the introduction of extra common newness.
  • Kidswear and Residence provide necessary potential for enchancment in market share. Nonetheless, progress within the yr was modest, in a tougher market, in opposition to pandemic associated comparatives. Having established a stronger worth place, the intention is to construct elevated consciousness and enchantment of the vary. As an example, partnerships corresponding to Fired Earth are being expanded throughout extra classes.

Sustained, market mainworthnotion: Because of enhancements to the vary, and funding in trusted worth, we’ve got held main worth notion scores in recent times, alongside Clothes & Residence’s lead for high quality and sustainability. Encouragingly, model notion can also be now enhancing.



Omni-channel improvement, supporting progress in Clothes & Residenceon-line

Clothes & Residence’s goal is to extend on-line gross sales participation and obtain a greater margin for on-line gross sales. We intention to drive on-line progress by means of elevated frequency and spend and utilizing the nationwide retailer and distribution community to supply a handy and constant service.

On-line gross sales grew 4.8%, pushed by an improved omni-channel proposition, with robust progress in Click on and Accumulate gross sales which had been up 20%. Buyer orders grew 12.6%, regardless of the results of courier capability constraints over peak buying and selling. This was partly offset by the normalisation of returns charges post-pandemic. As anticipated, on-line adjusted working revenue margin lowered to five.0% from 9.1%, this was as a consequence of sourcing price pressures which lowered gross margin and deliberate investments in digital and omni-channel enhancements to drive future progress.

Buying, changing, and retaining prospects: Clients who transfer from buying in a single channel to a number of channels and merchandise usually spend extra. An efficient and worthwhile method to serve these omni-channel prospects is thru the M&S App.

  • Use of the M&S App and related Sparks memberships continued to develop with common energetic App customers rising by c.40% to 4.3m supported by join campaigns such because the ’12 days of Sparks’ in December when customers may achieve entry to unique gives and rewards.
  • The intention is that the App ought to present a personalised ‘store entrance’ to the M&S model and Sparks loyalty membership and join the shop and on-line worlds by means of companies corresponding to straightforward assortment & returns and ‘scan and store’.
  • Upgrades to the web expertise have included, ‘one click on’ checkout with digital receipts, and improved performance within the App. On the identical time, improvement of automation has pushed additional progress within the quantity of personalised interactions.

Making ahandy and constant service throughout channels: The nationwide retailer and distribution community offers an necessary customer support benefit with over 60% of orders collected at retailer and greater than three quarters of on-line returns processed by means of the shop community.

  • Digital Click on and Accumulate is being rolled out to the property enabling fast assortment and we’ve got carried out self-service returns, lowering the price of processing and turnaround time for resale.
  • Utilizing in-store success to develop capability allowed 9% of things ordered on-line to be stuffed from retailer inventory. We’re additionally trialling the resale of Clothes & Residence returns made to Merely Meals shops by means of native hubs.
  • A key objective over the following three years is to leverage the omni-channel retailer and warehouse community, additional lowering prices and creating extra capability.

Early stage progress of third-party manufacturers: M&S now trades with over 140 companions, strengthening the shopper provide the place manufacturers are necessary corresponding to attire, sports activities, house and sweetness. Third social gathering manufacturers assist appeal to new buyers, who additionally purchase M&S merchandise.

Complete gross sales of Clothes, Magnificence and Residence manufacturers elevated 67% to £158m. On-line manufacturers gross sales now characterize c.8% of complete on-line gross sales

  • Launches through the yr included Clinique and Profit in magnificence and an prolonged sports activities provide by means of The Sports activities Edit at M&S.com.
  • Having grown quickly from a standing begin, funding is being made to simplify on-boarding for companions, to introduce ‘drop ship’ functionality to allow fulfilment from companion inventory and to scale back the quantity of break up shipments, thereby decreasing prices.

Ocado Retail Reset Underway

The Ocado Retail three way partnership combines the power of M&S’ model, meals high quality and innovation with distinctive and proprietary know-how to create a compelling provide. It has already generated important quantity progress and shopping for advantages for M&S Meals with over £600m of M&S product gross sales by means of Ocado.com final yr. Through the yr, new management was appointed, with Hannah Gibson taking the position of CEO.

Ocado Retail generated complete income of £2.22bn, down 1.2%. Whereas energetic prospects grew, revenues mirrored lowered volumes as a consequence of decrease buying frequency because of pandemic reversion and the impression of price inflation on prospects. The M&S share of Ocado Retail internet loss was £29.5m in contrast with a internet revenue of £13.9m in 2021/22. The discount was pushed by the results of upper mounted prices from new and underutilised capability, elevated advertising to drive new buyer progress and vitality associated price pressures.

Resetting the shopper proposition: The crew’s focus is on enhancing buyer expertise together with re-engaging lapsed and occasional prospects with improved service together with ‘kitchen desk’ deliveries and investing in worth to broaden enchantment, by means of the Ocado Worth Promise.

Enhancingworkingprices: Alongside this, steps to scale back prices are underway. These embrace community optimisation, with the proposal to stop operations on the Hatfield web site, shifting quantity to extra environment friendly CFCs together with Luton; the primary web site with on-grid robotic choose, in addition to advertising efficiencies and overhead reductions.

Deepening collaboration between Ocado Retail and M&S: The M&S core vary out there on Ocado.com has been elevated by greater than 300 traces to c.5,700, and we’re beginning to leverage the potential of the M&S buyer base extra broadly. Efficiencies are additionally being scoped from joint sourcing and logistics.

Substantial progress and revenue potential: Ocado Retail has grown income by 40% since 2019 and has a big, addressable market and substantial invested capability to develop gross sales and to recuperate profitability within the medium time period.



M&S’ goal is to develop Worldwide retail gross sales by means of leveraging its model by means of capital mild partnerships and a multi-platform on-line enterprise with world attain.

Worldwide gross sales elevated 11.2% at fixed foreign money to £1.06bn, with companion retail gross sales progress of 8% pushed by Clothes & Residence. Gross sales had been adversely impacted by c.5% by the exit from markets together with Russia through the yr.

On-line gross sales had been up 5% and are greater than double pre-Covid ranges now accounting for 22% of Worldwide Clothes & Residence gross sales. Working revenue earlier than adjusting gadgets of £84.8m in contrast with £73.6m in 2021/22, which included a contribution within the prior yr of £5.5m from Russia. Excluding the Republic of Eire, working revenue was £67.9m in contrast with £58.2m within the prior yr.

Demand restorationthroughoutcompanion markets:  In franchise and companion markets, demand was sturdy as companions re-stocked as footfall elevated following emergence from Covid, with specific power in India and the Center East.

Investing in European operations:  European on-line gross sales have grown quickly previously three years, and funding is being made to enhance customer support and cut back price to serve, together with opening a brand new logistics hub in Croatia enabling the direct import of inventory destined for EU markets.

Working to enhanceMeals profitability within the Republic of Eire: Within the Republic of Eire, whereas efficiency in Clothes & Residence was sturdy, the Meals enterprise continues to be impacted by Brexit associated prices. Steps embrace price restructuring, rising the proportion of domestically sourced provide and assessing new routes to market, with a franchise retailer trial underway with roadside retailer Applegreen.




In 2022/23, adjusted working margins had been 8.7% in Clothes & Residence and three.4% in Meals, in opposition to a medium-term goal of enhancing these to c.10% and c.4% respectively. The aim of the fee discount programme is structurally to scale back prices by greater than £400m over the following 5 years. Accelerated retailer rotation and driving worthwhile on-line progress will likely be an necessary driver to enhancing margins. On the identical time, we intention to offset annual inflation with productiveness enhancements.

To ship this, funding is being made in know-how to extend retail effectivity and cut back vitality prices, embarking on a multi-year programme within the provide chain and simplifying and streamlining digital, know-how and help centre capabilities. Examples of programmes embrace:

  • The roll out of an extra c.800 self-checkout tills (together with inside Clothes & Residence) and additional developments to scan and pay.  Consequently, in these shops over 70% of Meals transactions at the moment are self-serve. Alongside the results of gross sales leverage, this has enabled the enterprise to achieve its goal of 10% retail employees prices as a share of gross sales, forward of plan;
  • Warehouse rationalisation and funding in automation on the Bradford warehouse in Clothes & Residence, alongside modifications to returns processing; and
  • Simplified buildings throughout the help centre, which in 2022/23 included bringing collectively the digital and know-how groups in knowledge science, digital product improvement and enterprise programs.

Within the yr forward, inflation from colleague pay of greater than £100m and c.£50m in extra vitality prices are anticipated. Investments are deliberate in retailer service, accelerating retailer rotation and new know-how such because the Clothes & Residence order planning system and the roll out of a brand new Meals forecasting and ordering system. These headwinds will likely be partly offset by price financial savings of over £150m, ensuing general in a slight improve in prices.



A key component of the plan to reshape M&S is the creation of a high-performance tradition. The intention is to lift the ‘bench power’ of M&S expertise and create an easier, quicker, digitally enabled organisation. This requires a tradition that’s nearer to colleagues, nearer to prospects, and a spot the place everybody may be themselves and be their finest.  Key parts of the programme embrace:

  • Constructingan easier, quicker, digitally enabled organisation; As an example, digital management has been reset, together with the introduction of a brand new on-line and omni-channel director position. The know-how, digital product and knowledge groups have been introduced collectively as one operate and M&S Join created, placing M&S Financial institution & Providers and Sparks below one management;
  • Making atraditionthat’snearer to colleagues and nearer to prospects; Through the yr this included a considerable funding in colleague pay and reward and the requirement for help centre colleagues to spend seven days per yr working in retailer, bringing them near the front-line;
  • Elevating the bar on expertise; with fast-track studying and future leaders’ programmes launched creating abilities units in any respect ranges. On the identical time, sturdy targets linked to supply of the 9 priorities have been carried out; and
  • Constructingthe abilities for tomorrow; The info science and AI apprenticeship group has expanded to over 200 colleagues and the M&S BEAM Academy, which develops technical abilities units, continues to develop. Alongside this the Product Academy has geared up over 25,000 colleagues with promoting and repair abilities for contemporary omni-channel retailing.

That is supported by a set of core expectations and behaviours of how the enterprise operates from day after day.



M&S’ capital funding programme is targeted on rising quantity in progress channels and on structural reductions of the fee base. Appraisal of investments applies hurdle charges commensurate with threat, with a main concentrate on money payback on retailer investments.

Complete funding through the yr was over £500m, up from £300m in 2021/22. This included the £103m internet preliminary fee for the acquisition of Gist and simply over £400m of capital expenditure.

The rise in capex largely associated to retailer renewals, the resumption of property asset substitute following the pandemic and enhancements to the know-how infrastructure. Within the coming yr, we count on to keep up an identical degree of capital expenditure.

Capital expenditure is targeted on three programmes.

  1. Accelerating retailer rotation and renewal to create a excessive productiveness model defining property of c.180 full-line and c.400 Meals shops positioned in progress areas. Over 5 years that is anticipated to scale back Clothes & Residence promoting area by c.20% and improve Meals area by c.10-15%.
    • In 2022/23, the full-line property lowered by three shops, whereas the owned Merely Meals property elevated by 5.
    • In some circumstances, we’re on observe to double gross sales and pay again the capital invested in c.3-4 years, together with closure prices for relocations. instance of that is the Chesterfield Excessive Road retailer, which was closed and the enterprise relocated to the close by retail park.
    • This yr the plan is to open 8 full-line and 10 Meals shops whereas closing c.20, of which 10 will likely be closed for relocation. The relocations embrace opening 5 new ‘flagship’ properties in Liverpool, Leeds, Manchester, Birmingham and Thurrock.
    • Over 80 shops at the moment are in a renewal format together with a brand new full-line retailer at Stevenage. In full Meals renewals these add capability in areas catering to the bigger household store.
    • Paybacks at the moment common c. 4 years and within the subsequent part the plan is to refine area allocation, vary and repair to additional improve returns.
  2. Modernising the Clothes & Residence and Mealsprovide chains to create a decrease price community which prioritises the well timed move of merchandise over storage and inventory holding.Clothes & House is planning a five-year programme of funding which incorporates:
    • Consolidation, to concentrate on fewer, extra strategic clothes and material suppliers;
    • Methods upgrades to create better visibility, enhance replenishment and cut back extra inventory dedication and storage; and
    • Making a logistics community to help the omni-channel providing, largely utilizing current property, and investing in automation and new capability to enhance availability and pace up supply and returns.

    In Meals final yr the acquisition of Gist was accomplished, taking management of the logistics community:

    • The H2 contribution from the acquisition was c.£27m, from the elimination of administration charges, operational financial savings and improved service over peak;
    • There’s the potential to drive productiveness enhancements from shared transport throughout Clothes & Residence and Meals and a plan for community modernisation is being developed; and
    • A brand new forecasting, ordering and allocation system is being carried out, with the deliberate advantage of serving to to scale back waste.
  3. Making aextraparticipating digital buyerexpertise which brings collectively loyalty and fee, supported by an efficient know-how infrastructure.In 2022/23, the groups engaged on omni-channel & Sparks had been mixed with these accountable for business and enterprise planning programs to optimise use of know-how sources throughout the Group.
    • Funding in yr included know-how enhancements in shops and the preliminary implementation of the meals forecasting and ordering system, personalisation developments and the trial of Sparks Pay;
    • Steps are being taken to improve core programs, together with enterprise useful resource and new payroll functions and the availability chain enhancements outlined above; and
    • The chance to create a more practical fee and loyalty proposition by means of a unified single signal on throughout all M&S merchandise can also be being evaluated.


The Group’s means to speculate is pushed by its capital allocation framework, which focuses on the era of free cashflow from operations. In 2022/23, this was £170m and after the preliminary consideration for the acquisition of Gist, internet debt excluding lease liabilities lowered by an extra c.£64m to £356m, with the group persevering with to have substantial money balances of £1,068m. After current enhancements to the steadiness sheet, ratios of debt to EBITDA and cashflow to internet debt at the moment are at ranges according to an funding grade credit standing which balances the wants of shareholders and collectors whereas offering a strong ‘sponsor covenant’ to pension trustees. In 2023/24, we are going to proceed to concentrate on free cashflow, prioritised funding and look to attain an funding grade credit standing through the yr.


For further information, please contact:
Investor Relations:                                                             
Fraser Ramzan
+44 7554 227758
Sandeep Dasgupta
+44 7868 735 381

Media enquiries:
Corporate Press Office
+44 (0)20 8718 1919






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