London, June 11, 2026, 12:03 (BST)
- Marks & Spencer shares traded up 0.6% at about 365p in London, with investors looking at new price cuts in fresh food and the possible impact on margins.
- M&S said it put over £30 million into cutting prices on weekly food staples this year, slicing prices on more than 65 products this week.
- Food stands out for Marks & Spencer, as the unit put up 7.0% sales growth for 2025/26. Group profit took a hit, though, with costs from the cyberattack still dragging.
Marks & Spencer Group plc shares ticked up Thursday as investors looked at the new £30 million food price cut campaign. That’s a small move for the stock but points to how M&S wants to push past last year’s profit hit after the cyberattack. AJ Bell showed MKS at a 364.70p sell and 365.00p buy, up 2.20p, or 0.61%. Shares opened at 362.00p, after closing at 362.50p.
M&S has cut prices on over 65 everyday products, naming salmon fillets, British beef mince, free-range eggs, tomato ketchup, tortilla wraps, onions and French fries among the items. The move covers fresh food, store-cupboard and freezer goods, the retailer said.
M&S Food is turning into the main growth engine for the group, which is why investors are watching it. Food sales increased 7.0% to £9.7 billion in the year to March 28. UK volume was up 3.3%, with M&S describing the market as broadly flat. Volume growth is key—more important than a daily move in the share price—because it allows M&S to keep putting money into the business without sacrificing much margin.
M&S shares traded without much movement. According to Investing.com, the stock was at 364.10p, running between 360.30p and 365.20p through the session. The stock closed at 362.50p the previous day. Shares remain notably under the 52-week high of around 411p but sit above the low of nearly 301p.
M&S is pitching the price cuts as part of a push for more volume, not as a sign of trouble. The retailer said the changes are for its Remarksable Value, Dropped & Locked and Bigger Pack, Better Value lines. According to M&S, the Remarksable Value label now covers 145 items compared to rival prices, but sourcing and ingredients standards are unchanged.
Alex Freudmann, managing director at M&S Food, said the retailer is “continuing to invest in quality and price” as it tries to double its Food unit. The main question for investors is whether that spending pulls in more weekly-shop customers at M&S, or if price cuts just end up hurting margins. Marks & Spencer
Margin is in focus. M&S posted Food adjusted operating profit of £444.5 million for 2025/26, down from £491.8 million the year before. The drop followed higher markdown and waste costs in the first half. “Adjusted” profit strips out certain items M&S handles separately to show trading. Marks & Spencer
M&S is still dealing with the fallout from the cyberattack as the wider recovery continues. Reuters said last month the company expects profit growth again after adjusted profit before tax dropped 24% in 2025/26, hit by £131.3 million in cyber costs. Statutory profit before tax came in at £364.6 million, off 28.8%. Second-half adjusted profit was up 4.1%.
M&S’s store expansion is a key reason those food price cuts count. The company has pencilled in capital spending of about £650 million to £750 million for 2026/27, mainly for its Food division. M&S expects to build 18 new Food stores, extend four more, and open two full-line stores. Property investment is part of that plan, along with supply chain and tech.
M&S has been opening new sites in London, according to Time Out. The retailer added an 8,900-square-foot store at Tooting Broadway and shifted its Tottenham Court Road location to a spot 45% larger. More food stores are on the way this year in Sydenham and Elephant and Castle.
M&S is leaning more on value even as costs stay high. The company has flagged up rising fuel, freight, and input costs, along with government levies and more regulation. If they don’t see enough volume growth, cutting prices could pressure Food profit. A repeat of last year’s trouble with fashion stock or online service could also test investor patience with management.
M&S’s big investor dates are up next: the annual general meeting on July 7, then 2026/27 half-year numbers November 4, and Capital Markets Day November 10. By those updates, shareholders should see if lower prices on salmon, eggs and core groceries are boosting volumes through M&S Food—without cutting into the margins seen as key to the turnaround case.
