M&S food sales surge 16% as World Cup and heatwave drive strongest growth in three years
Marks & Spencer has delivered its strongest food sales performance in three years, with revenues surging 16% over the 12 weeks to July 12, according to market research firm Kantar Worldpanel. The growth represents a dramatic acceleration from the 4% increase the retailer achieved in its previous fiscal year.
The High Street retailer attracted more customers during a period marked by soaring temperatures and England's successful run to the World Cup semi-finals. The national team lost 2-1 to Argentina before defeating France 6-4 to claim third place on July 18.
The tournament, held across Canada, Mexico and the United States from June 11 to July 19, proved a significant driver of grocery sales across the sector. Fraser McKevitt, head of retail and consumer insight at Worldpanel, said:
Sport and sunshine combined to shape shopping habits this month, and England's run in the tournament had a clear impact on the drinks aisle.
Supermarkets recorded 497 million shopping trips over the four-week period to July 12, the highest figure since March 2020 when the UK entered COVID-19 lockdown. Kantar Worldpanel, which monitors the purchasing habits of 30,000 demographically representative households across Great Britain, tracks actual till transactions to compile its data.
Winners and losers in the grocery wars
M&S's recent success builds on improving financial performance, with adjusted profit before tax rising to £716 million for the 52 weeks to March 30, 2024, up from £453 million the previous year. The company's food division generated approximately £8 billion in revenue during that fiscal year.
Budget retailer Lidl recorded the sector's strongest growth, with sales rising 8.6% during the period. In contrast, rival discounter Aldi saw more modest gains of just 0.7%. Together, the German discounters now command approximately 18.3% of the UK grocery market, up from around 10% in 2017, with Aldi having overtaken Morrisons to become Britain's fourth-largest grocer.
Asda stood alone among major supermarkets in reporting declining sales, with revenues falling 1% to £4.2 billion. The retailer has struggled since its 2021 acquisition by the Issa brothers and private equity firm TDR Capital, with market share dropping from 15% at the time of the takeover to around 11.6% by mid-2026. The decline has proven persistent, with sales falling for 22 consecutive months through December 2025.
Morrisons, which has also faced difficulties following its October 2021 takeover by US private equity firm Clayton, Dubilier & Rice for £7 billion, managed modest growth of 1.4%. The supermarket reported losses of £1.5 billion in the year following its buyout and accumulated £6.1 billion in debt, a stark contrast to the £201 million profit it recorded before the acquisition.
The contrasting fortunes highlight the diverging strategies and circumstances facing Britain's grocery retailers, with M&S continuing its efforts to persuade more shoppers to do their weekly shop at its stores rather than treating it purely as a destination for premium treats.
