Key details of M&S update ahead of major Wednesday announcement – The Mirror
Need to know
The retailer is continuing its expansion in the grocery sector
Need to know: Marks and Spencer bids to dominate weekly shop with £400m investment spree
Marks and Spencer is making a bold bid to dominate Britain’s weekly shop as it prepares to unveil crucial full-year results on Wednesday.
The retail giant has splashed out £66m on a massive warehouse from Asos and announced a whopping £340m food distribution centre in Northamptonshire. Food logistics chief Kevin Bennett described it as a “major step in transforming [it] into a true destination for the weekly shop”.
M&S Food now accounts for more than half the company’s revenues at 54 per cent, with grocery sales surging 5.6 per cent year-on-year. The retailer celebrated its biggest-ever grocery market share of four per cent in November, putting pressure on upmarket rival Waitrose.
But the company is still recovering from last year’s devastating cyber attack, which chairman Archie Norman called “traumatic”. The attack cost M&S £300m in lost sales and forced a 12-week website shutdown.
M&S only recouped a third of its losses through insurance, with trading profit taking a £324m hit. The retailer’s share price has tumbled 11 per cent compared to last year, now sitting at 317p.
To win back investors, M&S needs to hit forecasts of £16.4bn total sales and £603m pre-tax profit when it reports results.
READ THE FULL STORY: M&S update for all UK stores before major Wednesday announcement
