Robyn Duffy, consumer markets senior analyst at RSM UK, comments on Marks & Spencer’s half-year results: “Marks & Spencer’s half-year results lay bare the financial toll of April’s cyber-attack, with group profits down 55% year-on-year to £184m. The incident is expected to cost the retailer around £300m in lost operating profit over the full year, reflecting weeks of disruption to online operations and supply chains. Yet the results also highlight the underlying resilience of the business. M&S CEO Stuart Machin pointed to the group’s robust financial foundations - alongside the loyalty of colleagues, suppliers and customers - as key to weathering the challenge and restoring momentum.

“M&S’s food business has rebounded strongly since availability normalised, with sales up year-on-year. Product innovation and a sharper focus on price competitiveness continue to strengthen its position, as the retailer evolves into more of a ‘shopping list’ destination for everyday groceries. Encouragingly, in the 12 weeks to 5 October 2025, market share rose by 10 basis points, with growth accelerating towards the end of the period as volumes benefited from an improved proposition and the restoration of click and collect. With the crucial Christmas trading period ahead, this momentum provides a positive backdrop for M&S’s core food division.

“Food remains a key growth engine for M&S. The retailer continues to expand its network of larger, higher-productivity stores as part of its multi-year rotation and renewal programme, targeting 420 renewed food stores and 180 full-line stores by 2027/28. The 12 food renewals opened over the past year have delivered sales uplifts of around 16% to date, underlining the strength of this strategy and its potential to drive sustained growth.

“Fashion, home and beauty have seen a more measured recovery, but media attention around its elevated style credentials reflects growing momentum. The division’s sharper focus on design and a “fewer, better-curated” product strategy is starting to deliver results. Menswear is benefitting from the same revitalisation that drove the womenswear turnaround, helping M&S attract younger customers while maintaining its core base. Over the longer term, this focus on quality, style and clarity of range should continue to strengthen M&S’s market position.

“The cyber incident has inevitably accelerated M&S’s digital transformation agenda. The business plans to step up the pace of change in the year ahead, creating a simpler, more resilient technology infrastructure to support long-term growth. In a sector where data and digital capability are increasingly central to competitiveness, these investments should leave M&S better positioned to manage future risks and capitalise on emerging opportunities.

“Looking ahead, all eyes now turn to the upcoming budget. In his opening remarks, Machin highlighted the significant headwinds facing retailers, noting that new taxes added more than £50m in costs during the first half alone. While M&S’s fundamentals remain solid and the outlook for H2 looks on track to be in line with last year, fiscal policy could prove to be the thorn in Machin’s side.”

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