Marks & Spencer Group (MKS) Investor Update summary

Vision and Purpose

• Aims to be the most trusted retailer, delivering exceptional quality, value, service, and innovation to every customer, whenever and however they shop.

Strategic Transformation and Growth Priorities

• Focus on long-term, sustainable growth through transformation, customer proximity, high-performance culture, and disciplined growth, with a five-year plan underway and significant progress in product quality, value, and operational efficiency.

• Product upgrades and innovation in Food and Clothing & Home have driven market share gains, with food reaching a 4% market share and clothing improving style perception and value; further opportunities exist in Kidswear, Home, and online.

• Category resets and price investments have led to four years of consecutive volume growth and best value perception in a decade, with 1.2 million more customers since 2022.

• Store rotation and renewal are progressing, with a pipeline of 70 stores and a target of 180 full-line and 420 food stores by FY28, focusing on high-quality, high-productivity locations and rigorous capital allocation.

• International business is under review due to eight years of flat growth, with plans to reset franchise partnerships, improve value, and leverage capital-light models for expansion.

Digital, Technology, and Supply Chain Transformation

• Comprehensive digital and technology overhaul aims to standardize, automate, and connect processes, reduce annual tech run costs by at least £40m in three years, and modernize 65% of systems over five years.

• Key initiatives include deploying AI for pricing and personalization, rolling out RFID and electronic shelf edge labels, and building a new digital spine to support omnichannel growth and productivity.

• Online participation increased to 33%, with Click & Collect serving 62% of orders; plans to grow online sales towards £2bn and launch an online food catalogue.

• Supply chain transformation in Food and Clothing & Home is a multi-year journey, with investments in automation, planning platforms, and logistics to improve availability, reduce costs, and support online growth.

• Store operations are being improved through programs like One Best Way, focusing on stock accuracy, availability, and productivity, with technology and process changes rolled out across divisions.