M&S: Marks and Spencer to 'reshape' UK stores despite bumper Christmas food sales - what it means for shoppers

• M&S saw a record number of shoppers over Christmas, driven by strong food sales
• Food revenue rose as customers bought more items, not just paid higher prices
• Value ranges performed particularly well as shoppers watched their budgets
• But fashion, home and beauty sales fell, hit by weaker high street footfall and cyber disruption
• The retailer says shoppers should expect changes as it plans to “reshape” the business in 2026

Marks & Spencer has delivered some festive cheer for its food shoppers in its most recent Christmas shopping update.

But behind the bumper turkey sales, the retailer is preparing shoppers for a period of change as it looks to “reshape” the business in a tougher retail climate.

In its Christmas trading update, M&S revealed that a record number of customers shopped with the chain over the festive period, with food doing the heavy lifting.

Food halls lead the way

Over the 13 weeks to December 27, food sales rose by 5.6% compared with the same period last year, matching the strong growth it delivered across 2024 as a whole.

Crucially for shoppers, it wasn’t just prices rising, both the value and volume of food sales increased. That means more people were buying more items, rather than simply paying more for the same shop.

M&S said its expanded Christmas food ranges helped lift spending while reducing waste and the need for heavy markdowns, suggesting festive lines sold through more cleanly than last year.

Everyday value still matters

The retailer also pointed to strong demand for everyday staples, alongside upgraded ranges such as Italian ready meals, in-store bakery products and deli counters.

Value-for-money lines were a particular bright spot, with sales jumping by around 20% as availability improved, a sign that budget-conscious shoppers are still very much in focus.

Fashion and home struggle to keep up

But the picture was less rosy outside of the food halls, and sales across fashion, home and beauty fell by 2.9% year on year.

While online sales continued to recover, this was more than offset by weaker spending in physical stores, which M&S partly blamed on reduced footfall on UK high streets.

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The division is also still dealing with the after-effects of a major cyber attack last year, which disrupted stock systems and logistics.

The incident forced M&S to suspend online orders for around six weeks and led to empty shelves in some stores. The company has previously warned the attack will knock around £136 million off annual profits.

What does it mean for shoppers?

So what does all this mean for shoppers in 2026? In short: expect more change. M&S says it is planning to “reshape” the business to drive growth in an “uncertain consumer environment”.

That includes transforming its stores, tightening costs and continuing to push digital improvements.

Chief executive Stuart Machin struck an upbeat tone, saying millions of customers trusted M&S to “deliver the family Christmas”, from festive food to party outfits.

While fashion and home is still recovering, he said online performance is improving and a larger-than-usual sale is already clearing space for new-season stock.

For shoppers, that likely means an even sharper focus on food innovation and value, alongside refreshed stores, leaner ranges and a business that’s trying to balance affordability with premium appeal as household budgets remain under pressure.