M&S Chief Speaks Out About Rising Shopper Stress

According to Stuart Machin, the CEO of Marks & Spencer, shoppers were more worried about rising expenses after Rachel Reeves’ address about the economy. He said that the uncertainties about anticipated tax changes made things unclear before the important Christmas shopping season.

Machin said that a lot of people are being careful with their holiday spending because they are worried about how future policy changes could affect their finances. He asked the government to be stable and open so that people would trust them again during a time when retail sales were very important.

Source: The MBS Group

Chancellor’s Ambiguity Fuels Consumer and Business Uncertainty

Reeves didn’t rule out breaching campaign promises not to raise taxes, which made things much more unpredictable in all businesses. Retailers and small companies are having a hard time figuring out how much it will cost to run their firms since financial expectations are changing ahead of the budget release.

Machin stated that the absence of information made both customers and stores apprehensive about what would happen in the next several months. He said that economic signals from leaders have a direct effect on people’s confidence in spending, which is still weak because of worries about inflation.

Timing of Fiscal Event Draws Retail Industry Frustration

Machin said that the government’s fiscal event happened right before Black Friday, which is a busy shopping period. He claimed that stores are “waiting for the 26th” since they don’t know if new budgetary measures will slow down spending.

He said that surprise tax changes might have a big negative effect on how people feel about the economy and how it works every day. He said, “No more taxes on everyday necessities,” and advised officials to focus on ways to boost the economy instead.

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Cyber Attack Has a Big Effect on M&S’s Financial Results

After a cyberattack that shut down operations for six weeks, M&S said that profits in the first half of the year fell by more than half. The company’s online clothes and home goods segment had a lot of problems, and recovery attempts slowed down the stability of the supply chain.

Profits fell from £413 million a year earlier to £184.1 million. Even while sales went down a little, food sales went up by 7.8%, making up for some losses in other areas.

Operational Recovery and Cyber Insurance Cushion Losses

Machin added that activities were taking longer to go back to normal than planned. For example, internet orders from other countries didn’t start up again until October. He said that by spring, everything will be back to normal and that client demand would be strong even though operations were delayed and disrupted.

The event cost the firm £324 million, but they got back £100 million through insurance. £50 million in packing fees and escalating insurance prices were other factors that hurt overall profit stability.

Efficiency Measures Aim to Deliver Major Cost Savings

To deal with problems, M&S started a cost-cutting program this fiscal year with the goal of saving £600 million. The plan involves making logistics more efficient, making internet shopping easier, and bringing stores up to date with new technology.

Machin said there will be no job losses and stressed that technology-driven change is about increasing productivity, not cutting jobs. After the cyberattack this year, the business set aside $102 million for legal and technical costs.

M&S Optimistic About Profit Recovery and Growth

M&S anticipates second-half profits to be the same as last year’s, even if there have been some problems. This will provide them a boost going into the next fiscal year. The shop is still growing; it opened six more stores this year and plans to open 12 more by March of next year.

Machin noted that the priority is still on long-term growth, with an emphasis on being flexible and efficient as customer behavior changes. He thinks that stable government and cautious optimism would help the brand make money again in 2026.