Retailer Marks & Spencer reported a 58 per cent rise in annual profit, ahead of market expectations, as its strategy to re-shape the business delivered strong sales growth in both its food and clothing divisions.
The 140-year old retailer, one of the biggest names in British business, also said on Wednesday it was confident of further progress in its new financial year.
After two decades of failed turnaround efforts, M&S, under CEO Stuart Machin, is finally reaping the rewards of an expensive investment programme to improve the quality and value of its clothing and food, upgrade its technology and e-commerce operations, and radically overhaul its store estate.
It made profit before tax and adjusting items of £716.4 million in the year to 30 March - ahead of analysts' forecasts which ranged £665-£705 million and the £453.3m made in 2022/23.
Sales rose 9.4 per cent to £13.1 billion, with food sales up 13.0 per cent and clothing and home sales up 5.3 per cent.
"Given our track record of delivering volume growth, market share and free cash flow we are confident that we will make further progress in 2024/25 and beyond," M&S said.
Coffee drinkers may soon see their morning treat get more expensive, as the price of coffee on international commodity markets hit its highest level on record today (10).
The price for Arabica beans, which account for most global production, topped £2.70 a pound (0.45kg), having jumped more than 80 per cent this year. The cost of Robusta beans, meanwhile, hit a fresh high in September.
It comes as coffee traders expect crops to shrink after the world's two largest producers, Brazil and Vietnam, were hit by bad weather and the drink's popularity continues to grow.
One expert told the BBC coffee brands were considering putting prices up in the new year.
While in recent years major coffee roasters have been able to absorb price hikes to keep customers happy and maintain market share, it looks like that's about to change, according to Vinh Nguyen, the chief executive of Tuan Loc Commodities.
"Brands like JDE Peet (the owner of the Douwe Egberts brand), Nestlé and all that, have [previously] taken the hit from higher raw material prices to themselves," Nguyen told BBC.
"But right now they are almost at a tipping point. A lot of them are mulling a price increase in supermarkets in [the first quarter] of 2025."
Late last month, Nestle confirmed it would continue raising prices and making packs smaller to offset the impact of higher bean prices. At an event for investors in November, a top Nestlé executive said the coffee industry was facing "tough times", admitting his company would have to adjust its prices and pack sizes.
"We are not immune to the price of coffee, far from it," said David Rennie, Nestlé's head of coffee brands.
Coffee is one of the most traded commodities in the world, and demand has been on the rise, boosted by growing consumption in China. However, there is only a handful of producer countries to meet this demand. The key producers include Brazil, Vietnam, Colombia, Indonesia, and Ethiopia, all tropical countries that are very much impacted by climate change.
Brazil experienced its worst drought in 70 years during August and September, followed by heavy rains in October, raising fears that the flowering crop could fail. The Houthi attacks in the Red Sea have also contributed to the uncertainty and fuelled price hikes as they affect shipments.
Convenience retailers could soon benefit from government-backed digital IDs, that will enable customers to prove their age using smartphones when purchasing alcohol.
According to reports, ministers are preparing to change the law for customers buying alcohol in shops and bars as part of the initiative to move more state functions online.
The change, expected to take effect next year, aims to streamline age verification processes, reduce administrative burdens, and enhance data privacy for both customers and retailers. It will give landlords and retailers the ability to scan digital identities to verify a customer’s age without unnecessarily disclosing personal information.
The move follows a recent consultation that revealed support for updating the Licensing Act 2003 to allow digital identities to be used for alcohol sales. Respondents also endorsed the idea that providers of digital identity services should meet stringent government-approved standards under the UK digital identity and attributes trust framework.
Reports said providers of the ID service will have to be verified by the government under the Data (Use and Access) Bill which is going through parliament. This will allow certified digital identities to join passports and driving licenses as accepted age verification methods.
While digital IDs will remain optional, their adoption is expected to modernise retail operations and enhance customer experiences.
“As the Covid passports showed during the pandemic, people are more willing to share their data if there is a demonstrable benefit to doing so. I think things have moved on from (Tony) Blair’s failed ID cards project because people now share more data than ever before as a result of the explosion in social media and the use of smartphones,” the Sunday Times quoted a senior government source as saying.
Former prime minister Tony Blair, whose government passed the Identity Cards Act 2006 creating a national identity card system, has earlier this year called for the introduction of digital ID cards, saying they could help control immigration.
But the Labour government has ruled out ID cards, with home secretary Yvette Cooper saying: “That’s not our approach.” Reports said the new digital IDs will not be mandatory.
Blair’s scheme, which faced significant criticism over privacy concerns, civil liberties, and the high cost of implementation, was later scrapped by the Conservative-Liberal Democrat coalition government.
The much-hyped Quality Street Collisions sharing bar, which brought together the beloved flavours of The Purple One and the Green Triangle, has been officially discontinued.
The decision came to light after a disappointed shopper queried its absence on X (formerly Twitter), writing, “Has the Collisions bar been discontinued? I can’t find it anymore; it was my favourite chocolate bar of all time.”
Quality Street responded with confirmation, stating, “Unfortunately, it wasn’t as popular as others in the range, so it has been discontinued.”
Launched with significant fanfare last year, the Collisions bar was aimed at capitalising on the brand’s iconic flavours in a new format. However, despite initial excitement, it appears the product failed to resonate enough with consumers to secure its place on shelves.
Quality Street Collisions sharing bar, which was first introduced in August 2023, combined gooey caramel, creamy hazelnut and crunchy hazelnut pieces in three delicious layers.
“We’re sure that Quality Street fans will love the fact that two favourites have been brought together to make a triple-layered treat that’s perfect for gifting or sharing with family and friends,” Samantha Hirst, brand manager for Quality Street at Nestlé UK and Ireland, said at the time of the launch.
Meanwhile, supermarket Asda has slashed the price of Quality Street in its UK stores, just in time for the festive season. The supermarket is offering two 600g tubs of the popular chocolates for £9, which works out at £4.50 each.
A tub of Quality Street usually costs £6, giving shoppers a saving of £1.50. Asda has extended the offer to also include Cadbury Roses, Cadbury Heroes, Celebrations and Swizzels so customers can mix and match.
Asda has announced a new trial of electronic shelf edge labels (eSELs) at an Asda Express convenience store in Manchester city centre.
Working with Vusion Group to install 3000 electronic shelf edge labels, pricing updates at the Oxford Road store can be done in as little as 15 seconds – allowing colleagues to make changes at the click of a button.
Running for 12 weeks, the trial aims to simplify operations for colleagues and ensure more of their time can be spent meeting the needs of customers.
The Manchester Oxford Road store is a high footfall store, which will help to stress test the technology and provide even more learnings. The trial will be run across a wide array of product categories, including frozen, fresh, instore bakery, toiletries as well as beers, wines and spirits.
Chris Walker, Managing Director of Asda Express, said: “We’re delighted to launch a new trial of electronic shelf edge labels, as we continue to invest in enhancing our instore processes.
“This ‘test and learn’ trial will not only help to simplify operations for colleagues in the store, but it will also provide us with valuable learnings that will shape future technology rollouts into stores. We look forward to hearing feedback from customers and colleagues on the trial.”
Asda has previously tested similar technology at its Stevenage superstore, concluding the trial in 2023. Asda hopes to continue investing in future technology trials within its Express estate, as it sets out to provide an enhanced instore customer experience.
Millbrook Dairy, the fast-growing cheese and butter business founded in 2019 by David Evans and Kevin Beer, has been presented with the prestigious King’s Awards for Enterprise in International Trade, by David Fursdon, His Majesty’s Lord-Lieutenant of Devon.
The Award recognises Devon-based Millbrook Dairy’s exceptional performance and growth in collaborating with partners around the world to buy and sell dairy products. The company specialises in procuring and selling bulk and packaged cheese and butter across international markets with its main source of dairy products stemming from the UK and Ireland.
At the heart of this recognition lies the fact that overseas sales have grown over three years by 109 per cent. The company now operates across Europe, The Middle East, North America, and Asia-Pacific. As a start-up that was established in 2019, all current markets were entered in over this period and Millbrook Dairy is now the UK’s fastest-growing trader and exporter of bulk cheese into world markets.
Additional to its bulk cheese and butter business, Millbrook Dairy has developed its own premium brand, 1057 Extra Mature Scottish Cheddar, which is sold in USA, Canada, and Australia.
During the occasion, David Fursdon, His Majesty’s Lord-Lieutenant of Devon was full of praise for Millbrook Dairy for achieving its first Royal honour. He said, “We are delighted that Millbrook Dairy has been recognised with the UK’s highest business accolade.
"Against the backdrop of global economic uncertainty – due to inflation, international conflicts and various supply chain disruptions – Millbrook Dairy has shown that it remains possible to thrive globally and that demand for British exports is high.
"In this challenging period, it’s right that we celebrate Millbrook Dairy and showcase its achievements to the wider business community to encourage and inspire more firms – particularly SMEs – to look at trade again for growth.
"To present this award today to a Devon-based business has been a privilege.”
Co-founders Kevin Beer and David Evans, said that the extraordinary teamwork, deep-rooted relationships, and values that are shared across the whole team within the business have been a major contributor to its success.
“We are proud and humbled to have been presented with The King’s Awards for Enterprise: International Trade 2024 by David Fursdon, His Majesty’s Lord-Lieutenant of Devon.
“When we started on our journey in 2019, we never thought the business would grow in the way it has and especially during the turbulent trading periods that have been in place. For us, winning a King’s Awards for Enterprise and being recognised by the highest business awards in the land is a remarkable achievement and a very big honour," Beer and Evans said.
The King’s Awards for Enterprise, previously known as The Queen’s Awards for Enterprise, were renamed last year to reflect His Majesty The King’s desire to continue the legacy of HM Queen Elizabeth II’s by recognising outstanding UK businesses.
The Awards celebrate the success of exciting and innovative businesses which are leading the way with pioneering products or services, delivering impressive social mobility programmes, or showing their commitment to excellent sustainable development practices.
The Awards programme, now in its 58th year, is the most prestigious business award in the country, with successful businesses able to use the esteemed King’s Awards for Enterprise’ Emblem for the next five years.