Marks & Spencer Group (MKS) Investor Update summary

Vision and Purpose

• Aims to be the most trusted retailer, prioritizing quality products and doing the right thing for customers.

• Purpose is to deliver exceptional quality, value, service, and innovation to every customer, whenever and however they shop.

Strategic Transformation and Growth Priorities

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

• Product-led strategy drives improvements in food and clothing, with investments in quality and value resulting in market share gains and volume growth, especially in core categories and heartland ranges.

• Category resets in Food and Clothing & Home have driven sales, market share, and improved style perceptions across all categories.

• Price investments have led to four years of consecutive volume growth and best value perception in a decade.

• 1.2 million more customers since 2022, with increased frequency and strong performance in key food categories.

Omnichannel and Digital Transformation

• Omnichannel and online remain key growth drivers, with a target of 50% online participation in Clothing & Home and significant investments in digital, technology, and supply chain transformation.

• Online participation increased to 33%, with Click & Collect serving 62% of orders; Ocado Retail remains loss-making but is growing.

• Plans to grow online sales towards £2bn, launch an online food catalogue, and improve profitability in Ocado Retail.

• Enhanced app experience and increased online sales through the app, with ongoing investments in technology and personalization.

• Building a new digital spine to unlock growth, margin, and agility, targeting at least £40m annualized cost out by FY28.