M&S released its half year results for the 26 weeks ending 26 September 2026, showing strong growth across its food business marked by several areas of growth and comparison against last years difficulties.
M&S posted its half-year results for the 26 ended 26 September 2026, revealing a strong performance and the outcomes of its recent reinvestments and focus on its Food business. Since March 2026, M&S has opened, renewed or extended 18 stores across the UK (13 stores), ROI and Channel Islands (5 stores), while closing 20 underperforming stores, 19 of which were in the UK. These openings, renewals, and closures have worked in tandem with private label innovation and expansion, investments in value to produce the strong results seen in its official reporting. However, year-on-year comparisons that the results are based on must be taken into considerations, as the previous half-year results were negatively impacted by the spring cyber-attacks in a major way.
Food business growth of 13.9%
M&S reported its half-year revenue for 2026/27 at £9,255m, growing £1,289.8m since half-year 2025/26 which sat at £7,965.2m. Adjusted profit before tax sat at £403.2m, compared to £181.1m last year, with statutory profit sitting at £355.1m, versus £3.4m last year. Regarding Food sales, the retailer reported a sales growth of 13.9% with a margin of 5.6%, and a Food volume growth of 11.9%. Ocado Retail saw sales grow 20.6% with a margin of 1.4%, with M&S Food sales on Ocado Retail growing 22.8%, now making up 30.9% of the average basket.
The highly inflated growth rates can be attributed to being in comparison to the poor results from half-year 2025/26 after the cyber-attacks that impacted its online channel and stock management capabilities. However, it does prove that the retailer has had an incredibly strong turnaround following the incident with an optimistic outlook for the future.
Key drivers of these results
Investment in Food business expansion
A key driver of M&S’ growth was its continued investment in physical retail. The 18 openings and renewals helped the retailers long-term strategy of concentrating its investments into larger and more productive Food stores offering its full Food range to capture larger baskets and entice more weekly shoppers. The positive performance in both sales and volumes indicates the investments in expansion are increasing penetration across a wider area, supporting market share growth.
Continued focus on value
M&S has continued to invest heavily in improving its overall value, with the knock-on effect of improving its value perception to shoppers. This is vital to allow M&S to broaden its appeal beyond its traditional shopper base.
It has been using promotions on seasonal products, targeted price investments such as the reduction in price on its Organic range, and expansion of its Remarksable Value range across more categories and essential items. The investment signals that M&S are attempting to narrow the gap between itself and mainstream retailers, while maintaining its premium quality perception. This balance works with UK shopper trends, as shoppers are remaining cautious with spend.
Private label and innovation
The depth and continued innovation of M&S’ private label continues to be one of the retailers strongest differentiators. The retailer continued to launch new products and seasonal ranges throughout the period, reinforcing its reputation for timely and trending innovation. Exclusive product development not only supported the higher margins seen, but also improves shopper experience through revived interest in certain categories. The reported volumes suggest that the retailers efforts to drive innovation is resonating with shoppers.
Growth through Ocado Retail
The partnership with Ocado Retail continues to bolster M&S’ online presence. M&S products accounted for 30.9% of the average Ocado basket, while M&S Food sales through the platform increased by 22.8%. this demonstrates the importance of e-commerce and omnichannel availability as a route to market and how Ocado broadens the scope of shoppers M&S can reach.
Recovery from prior-year disruption
While M&S’ half-year results are undoubtedly strong, it needs to be viewed alongside the knowledge of the 2025/26 cyber-attacks. This created a weak comparative period, inflating the year-on-year growth rates seen in the announced results. Nevertheless, the results demonstrate the successful operational recovery, with M&S returning to growth and rebuilding after disruption.
What are the implications on the UK grocery industry?
The results highlight the continued strength of premium private label in UK grocery despite ongoing budget pressures. Shoppers are still willing to pay for quality and innovation, supporting the proposition M&S offer. The performance also reinforces the importance of private label in driving loyalty and improving margins, encouraging competitors to head down similar routes. Meanwhile, the growth seen through Ocado Retail is encouraging and highlights the importance of having an online presence in grocery retail.
Looking ahead
M&S appears well positioned to continue gaining grocery market share through store investment, private label, and the partnership with Ocado Retail. While growth rates are likely to moderate as the comparison period changes from the cyber-attacks, the retailer has shown it can recover well from operational struggles. If M&S can maintain its balance between premium quality and value, it can continue to grow in sentiment among shoppers and reach its long-term goal of doubling its Food business.