Marks & Spencer said its food arm is driving the retailer’s return to growth, despite the “onslaught of cost headwinds” facing the industry. 

The FTSE 100 retailer posted a £355m pre-tax profit in the six months to the end of September, up from £3m last year when a cyber attack shut down its website and left its shelves empty. 

The group, one of the UK’s best-known retailers, has looked to its growing food businesses to drive its recovery from the cyber incident which wiped more than £100m of its profit in April last year. 

Stuart Machin, the firm’s chief executive, said: “Our hard work over the last few years to create a strong balance sheet has built a firm financial footing from which to invest and we are confident in the opportunities ahead.

“Despite the onslaught of cost headwinds, we have remained focussed on our ambitions, and we are clear on our plan.” 

M&S Food is picking up 1.5m more customers than this time last year, the company said, driving 12 per cent volume growth. The grocer has sought to win over younger shoppers with novelty products – like strawberries and cream sandwiches – and social media content. 

Overall sales growth in the group’s food arm came in at 13.9 per cent in the six-month period, to £5.2bn, as the firm attempts to boost its market share by one per cent by 2028.

M&S Food is attempting to become a “shopping-list retailer” by tempting British households away from its rivals and becoming the destination for their weekly shop. 

The group has pursued bigger and better stores to win over consumers. The size of its average shop floor has doubled in the last five years and it opened, refurbished or extended 17 stores in the last six months.

Online sales soar as stores slip

Marks and Spencer’s fashion and home departments have taken longer to recover from the cyber attack. Machin told shareholders that this part of the business has “bounced back” but “fell short of [its] potential”. 

Fashion, home and beauty sales grew 17.5 per cent to £2bn, against soft comparatives last year after the cyber incident prevented shoppers from placing online orders for weeks and slowed the delivery of stock to stores. 

“Despite strong brand health indicators for quality, value and style and further market share growth, sales and profit remained below two years ago as the business did not maximise conversion of demand for sales,” the group told investors. 

Demand for M&S’ fashion and home products is moving online, the firm said, with store sales declining by five per cent compared to two years ago. Online sales jumped by 11 per cent in the same period. 

The retailer said it is hopeful that its flagship stores can still draw significant footfall, pointing to its recently renewed Pantheon site in Oxford Street. Since the store reopened, its fashion, home and beauty floors here have posted a 27 per cent jump in sales compared to two years earlier.

Machin said: “Four years ago, we set out a very clear strategy to protect the magic of M&S while modernising the rest and we are making good progress. As we look forward to Christmas, we are laser-focused on delivering both our trading and transformation plans.”