M&S chief executive Stuart Machin has vowed to steer clear of “big job losses” at the retailer, despite facing significant cost headwinds in the year ahead.
Following its bumper Christmas trading results which saw sales top £4bn, Machin highlighted rising costs, including £120m in additional wage expenses driven by National Insurance increases.
He said: “I do not see in M&S big job losses. We’re a growing business. We’ve got lots to do.”
Instead of resorting to layoffs, Machin said the business has prepared an updated multi-pronged strategy to mitigate costs, with a key focus on supply chain efficiency.
“We’re investing heavily in supply chain, but we also want to see some supply chain savings come out over these next three years,” he said.
Machin also emphasised the importance of a restructured cost programme and driving productivity improvements, as well as driving volume growth.
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“We talk a lot about volume growth, because the more we sell, the more that offsets some of these cost pressures, and that’s why being a growth business and focusing on growth all the time is critically important,” he explained.
M&S plans to manage costs through targeted recruitment and strategic investments, and Machin stressed the need to be “really diligent in targeting areas for new hires and capital expenditure.”
He said the retailer recruited more Christmas temps this year than ever before, reflecting its growth, and that it aims to maintain momentum through priorities like food supply chain transformation, store renewal and enhancing digital operations.
Machin reiterated that the retailer will strive to shield customers from the full brunt of rising costs by aiming to “inflate behind the market” like it has done in previous years.
“I really want us to hold our prices as much as we can,” he said.
Despite the challenges ahead, Machin expressed confidence in M&S’s ability to navigate the economic turbulence. “Lots is in our control,” he said. “We go into 2025 shifting up a gear.”
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