M&S boss slams Budget as 'a lot of nothing' as retailer grapples with cost hikes
The boss of Marks and Spencer has slammed Labour's latest Budget as "a whole lot of nothing", accusing the Government of orchestrating "one of the biggest tax grabs in history". Stuart Machin said the retailer had been hit by an "onslaught" of headwinds after a punishing series of cost increases following three Labour Budgets.
TL;DR
- M&S CEO Stuart Machin has strongly criticized Labour's latest Budget, calling it "a whole lot of nothing" and "one of the biggest tax grabs in history."
- Machin cited "onslaughts" of headwinds and punishing cost increases following three Labour Budgets as significant challenges for the retailer.
- Despite headwinds, M&S reported adjusted pre-tax profits of £403.2 million for the 26 weeks to September 26, an increase from the previous year.
- The company absorbed around £35 million in costs from increases to packaging taxes, pay, National Insurance, and Middle East disruption.
- Past cyber incidents impacting logistics systems and the "long-tail impact" on product availability continue to affect fashion, home, and beauty sales.
- Strong growth in the food business is performing "ahead" of plan, contributing significantly to sales figures.
- M&S reported sales lift of 16.2% to £9.25 billion for the half-year to September.
- Food operations saw a 13.9% jump in sales, benefiting from volume increases, store openings, and investments.
- Fashion, home, and beauty sales increased by 17.5% year-on-year, aided by online recovery post-cyber attack.