Game Changer: M&S Brand's Spectacular Return to FTSE 100 Surpasses All Rivals

Marks and Spencer is poised to make a comeback to the illustrious FTSE 100 index, cementing its status as one of Britain's most valuable companies. After a hiatus since 2019, the company's revival can be attributed to several factors, with its brand strength standing out as a key driver. Exclusive data shared with Our Website reveals that Marks and Spencer's brand has outperformed its competitors in the retail industry across various brand health metrics.

According to YouGov's BrandIndex, the perception of the M&S brand has experienced a remarkable increase, surpassing the average growth rate of the retail sector over the past year. YouGov further highlights that Marks and Spencer's brand dominance is unparalleled in the UK retail landscape.

The brand index score for the company has improved from 46.3 to 48.7 (+2.4) in the past year, indicating positive brand health. The sector as a whole also saw a smaller increase from 11.2 to 11.7 (+0.5).

This trend is evident in both the food and fashion divisions of the company. In the food division, the score has risen from 36.7 to 39.5 (+2.8), while the sector as a whole has slightly declined from 7.0 to 6.5 (-0.5).

M&S's performance is deemed superior when compared to the average scores of the 'Big Four' supermarkets (Asda, Tesco, Sainsbury's, and Morrisons), according to YouGov. The 'Big Four' supermarkets experienced a decline from 27.0 to 23.0 (-4.0).

Furthermore, M&S's fashion offering has witnessed an increase in its index score, rising from 43.2 to 46.8 (+3.6). In contrast, high street fashion retailers, on average, saw a modest increase from 8.0 to 8.9 (+0.9).

A closer analysis of the data reveals that M&S, as a high street retailer, experienced an improvement in its perceived quality score, which increased from 59.9 to 63.2 (+3.3) between August 2022 and August 2023. Additionally, satisfaction scores rose from 54.7 to 58.3 (+3.6), and impression scores saw a two-point increase from 55.9 to 57.9.

In terms of its fashion division, the impression scores showed a significant increase from 48.9 to 53.8 (+4.9), while the quality scores also witnessed a rise from 52.8 to 57.7 (+4.9) over the course of the year. Furthermore, the reputation measure experienced a positive change of 3.7 points, escalating from 30.8 to 34.5.

The impression score for M&S Food saw a slight improvement from 46.0 to 47.8 (+1.8), while its customer satisfaction scores increased from 42.4 to 43.2 (+0.8). It is important to note that these scores should be compared with the industry as a whole, where there was a general decrease in scores over the past year. However, it is worth highlighting that M&S consistently outperformed the industry average in all of these cases.

Playing FTSE

The retailer's inclusion in the FTSE 100 after a four-year absence is a result of its return to growth. Having been a founding member, M&S dropped out of the prestigious list in 2019, marking a historic occasion. However, with its share price exceeding £4.3bn and experiencing a remarkable surge of over 60% in just this year, it is poised to regain its position.

Earlier this month, M&S provided an update on its trading performance for the first 19 weeks. The report revealed a significant growth in like-for-like food sales, with an increase of 11%. Additionally, there was a positive expansion in clothing and homes sales, with a growth rate of over 6%. These favorable outcomes prompted the group to revise its forecast for the interim results, which are set to be released at the end of September.

When M&S released its latest full year results in May, it was evident that sales had experienced a notable increase. Sales in the food category saw a rise of 8.7%, while the clothing range witnessed growth of 11.5%. Furthermore, online sales demonstrated a growth rate of 4.8%, whereas in-store sales soared by 14.99%.

The retailer's fortunes have taken a positive turn, as it has successfully rebounded from a challenging period two years ago when clothing sales plummeted by 34% in FY21.

Sherry Cramond and Anna Braithwaite, marketing directors at M&S, will be sharing insights into the brand's transformative journey at the Our Website's Festival of Marketing, taking place at The Brewery in London on Thursday, October 5th. For additional details, please click here.