Marks & Spencer 'specialist positioning' enhances growth in food business
Marks and Spencer's food business is continuing to "outperform" the market, with sales growth up 3.6% or 1% on a like-for-like basis.
Marks and Spencer's food business is continuing to "outperform" the market, with sales growth up 3.6% or 1% on a like-for-like basis.
Across the business group sales improved its group sales by 1% to £4.9 billion for the 26 weeks to September 2014.
Marks & Spencer's specialist positioning sets it apart from the competitionThe retailer has seen 0.2% growth in LFL sales in its food arm, with 'specialist positioning' such as offering more unusual wine varieties, are having a positive effect.
On the food side, M&S said "specialist positioning continues to set us apart from the competition", such as listing more unusual wine varieties.
Overall underlying profit before tax grew 2.3% to £268 million, with statutory PBT at £279 million. The group's general merchandise fell 2.3%, with like-for-likes down 2.9%. Clothing was down 1.6% while like-for-likes fell by 2.2%. The group said September's "unseasonal conditions" adversely impacted the first half.
M&S.com first half sales fell 6.3% while womenswear performance improved by 1.3%.
Chief executive Marc Bolland, said: "M&S delivered sales growth and increased profit in the first half despite a tough market, particularly in September. We are pleased with the progress we have made against our key priorities for the year: GM gross margin, improving womenswear, driving food growth and cash generation."
The retailer's wine department prides itself on offering more specialised wines, along with the usual bestselling varieties. It brought in a range of Brazilian wines, and cachaça, in time for the World Cup over the summer. It also stocked the first Japanese wine to be listed by a UK supermarket. Sol Lucet Koshu was launched in May in limited quantities, and retails at £12.99 for 7c5l, and has an abv of 11.5%. Speaking in July, M&S told Harpers.co.uk sales have been "really good".
In 2012 M&S introduced an eastern Mediterranean wine range, inspired by the region's food. Sales are increasing by 36% year on year.
Earlier this year Marks & Spencer was named the supermarket of the year in the International Wine Challenge for the second year running.
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56-58 Church Walk, Burgess Hill, West Sussex, RH15 9AN
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