Marks & Spencer has recorded a loss for the first time, despite a growth in revenue and profitability in its Ocado Retail venture.
The retail group reported a loss of £87.6m before tax for the half-year up to 26 September, with its clothing and home division “heavily impacted” by the full Covid lockdown. The division saw a loss of £107.5m after turnover fell to £917.2m for the period, compared to £ 1.5bn for the first six months of 2019.
However, M&S said its food business had performed “strongly” despite “substantial” headwinds from the Covid pandemic, achieving a 2.7 per cent increase in like-for-like sales.
And, the retailer saw strong initial return on investment from its switchover to supply its products online through Ocado Retail from 1 September. The division saw revenue increase by 47.9 per cent with an “overwhelmingly favourable customer response”.
Chief executive, Steve Rowe, said performance for the half-year had been “much more robust” than expected.
“This reflects the resilience of our business and the incredible efforts of my M&S colleagues who have been quite simply outstanding,” he said. “From launching M&S Food online with Ocado to establishing an integrated online business division ‘MS2’ to step-change growth, we are taking the right actions to come through the crisis stronger and set up to win in the new world.”
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