London, January 6, 2026, 10:16 GMT — Regular session
- Marks and Spencer shares fall 1.6% in early London trade, hovering near the year’s low.
- Industry data showed M&S grocery sales up 7.2% over the past 12 weeks as UK grocery inflation eased in December.
- Traders are positioning for M&S’s Christmas trading statement due on Thursday.
Shares in Marks and Spencer Group plc (MKS.L) fell 1.6% to 317.5 pence by 10:16 GMT on Tuesday, down 5.2 pence from the previous close. The stock traded between 316.46 and 327.60 pence, and is edging just above its 52-week low of 315.30.
The slide comes ahead of a key seasonal read. M&S is due to publish its Christmas trading update on Thursday, Jan. 8, a statement investors use to gauge holiday demand and any knock-on effects for profit guidance — the company’s forecast for earnings.
UK apparel peers delivered an early signal on Tuesday. Next said it lifted its annual profit forecast after a 10.6% rise in full-price Christmas sales, pushing its shares up 3.1%. “This tough backdrop may make future upgrades harder to come by,” Shore Capital analyst David Hughes said. Reuters
Food data pointed in a steadier direction. Worldpanel by Numerator said M&S grocery sales rose 7.2% over the 12 weeks to Dec. 28, while UK grocery inflation eased to 4.3% in December — an early indication ahead of official UK inflation data due on Jan. 21. Overall grocery sales were 13.8 billion pounds in the four weeks to Dec. 28, up 3.8% year on year, but volumes fell once inflation was stripped out, it said.
M&S straddles two very different engines: food, where it has been gaining ground, and clothing and home, which is more exposed to weather swings and discretionary spending.
Thursday’s statement is expected to sharpen the debate over mix and margins. Traders will focus on whether strong top-line sales translated into profit once promotions, or price cuts, are taken into account.
Investors will also listen for signals on inventory and markdown risk into January, when many retailers clear seasonal stock. A cautious tone on forward demand can weigh heavily on shares after the Christmas quarter.
Technically, the shares are sitting close to the 315 pence area after retreating roughly a quarter from their 52-week high. A break lower would put the year’s floor back in play, while a rebound would need to reclaim the prior close near 323 pence.
But the read-through can cut both ways. Strong sales can still disappoint if discounting and costs squeeze margins, and easing food inflation can reduce price-led growth even if it helps shopper demand.
