Marks & Spencer tumbles to full-year loss as it seeks to reshape business

M&S recorded a statutory loss before tax of £201m in the 52 weeks to March 27, while that figure inched up to £209m in losses across the 53-week recording period to April 3.

The retailer reported a profit before tax and adjusting items of £42m for the 52 weeks, but this was negatively impacted by the costs of restructuring operations and rotating the store estate.

M&S total revenues fell 12% to £8.97bn during the 52-week period, as food like-for-like sales inched up 1.3%, while clothing and home sales dropped 32%.

The heritage retailer said that online sales growth of 54% almost offset lost store sales, which fell 56% amid enforced store closures during the pandemic.

As part of its “never the same again” promise M&S launched its partnership with Ocado in September 2020, investing in online and digital capabilities.

The retailer said M&S products now account for more than 25% of the average Ocado basket, as it improved its value and broadened its appeal with 1,900 new lines.

M&S also reintroduced its Sparks loyalty programme during the year, and reshaped its clothing and home business to focus on more casual and activewear garments.

M&S chief executive Steve Rowe said: “In a year like no other we have delivered a resilient trading performance, thanks in no small part to the extraordinary efforts of our colleagues. 

“In addition, by going further and faster in our transformation through the ‘Never the Same Again’ programme, we moved beyond fixing the basics to forge a reshaped M&S. 

“With the right team in place to accelerate change in the trading businesses and build a trajectory for future growth, we now have a clear line of sight on the path to make M&S special again. The transformation has moved to the next phase.”