Marks & Spencer shareholders will be hoping to put 2022 behind them when the retailer delivers its post-Christmas update on Thursday.
A year ago, M&S was crowned the country’s fastest-growing grocer over the festive period, marking a huge stride on its turnaround under former boss Steve Rowe. It also saw a surge in sales for its clothing and home goods, driven by record-breaking lingerie sales.
But the tide quickly turned as energy bills spiked, leaving the retailer grappling with a toxic combination of soaring costs and cash-strapped customers tightening their purse strings. Its shares took a pounding, crashing 45 per cent over the year.
M&S shareholders will be hoping that Rowe’s replacement, Stuart Machin, can spark life back into the stock.
Markets were soothed on Thursday by a bumper Christmas performance from High Street bellwether Next.
Any signs that M&S’s clothing and home arm can follow suit in dodging the worst impacts of the cost of living crisis will be a much-needed boost. Its food sales are expected to show more resilience, as families celebrating their first Covid-free Christmas splashed out on its premium selection.
Hargreaves Lansdown analyst Susannah Streeter said: ‘Although M&S won’t be completely immune to the cost of living headwinds whipping around, it has a different proposition to the other big grocers, and its classic customer is unlikely to stop shopping at its stores solely because of inflationary pressures.’
