LONDON – Marks and Spencer Group is accelerating supply chain improvements in fashion, home and beauty after a year disrupted by a cyber incident, with a fully automated fashion distribution site at Lichfield acquired to increase capacity and speed new styles to market.
The update came in the retailer’s full-year results which saw Fashion, Home & Beauty sales fall 7.7%, while adjusted operating profit in the division dropped to £213.4 million from £478.0 million.
It added that customer perceptions of style improved despite the disruption, suggesting the recovery in the clothing business is underpinned by the brand rather than by volume alone.
M&S said the new Lichfield site forms part of a wider effort to secure capacity for fashion online and reduce stock-flow constraints. While the release did not disclose the plant’s technical specification, the language points to a distribution-led response rather than a change in garment-making technology itself.
For knitting and hosiery suppliers, the message is that the retailer wants faster replenishment, tighter availability and more responsive seasonal lines. That is likely to favour mills and manufacturers that can support shorter lead times and cleaner inventory control across jersey and legwear ranges.
The company said food remained the standout performer, with sales up 7.0% and adjusted operating profit of £444.5m. In that division, M&S highlighted continued investment in value, quality, innovation and long-term supplier commitments, which is relevant to textile suppliers serving food retail, uniforms and ancillary packaging-related work.
Group adjusted profit before tax fell 23.8% to £671.4 million, although second-half adjusted profit rose 4.1% year on year as Food offset weakness in Fashion, Home & Beauty. The retailer said the first half was hit by the cyber incident, while the second half showed recovery in trading and operations.
Looking ahead, M&S said 2026/27 will see more investment in supply chain modernisation, technology transformation and store rotation. It also said digital work will continue on planning systems, e-commerce and selective AI use, including pricing, waste reduction and personalised offers.
The retailer expects profit growth to resume versus 2024/25, but warned that higher fuel, freight and input costs, together with tax and regulatory pressures, will remain a drag on the sector. For clothing and hosiery manufacturers, that points to a market that is still cost-conscious, but placing more weight on speed, availability and style-led execution.
