Marks & Spencer has today reported impressive growth in sales and profits
for the first half of its financial year as part of a performance that is likely
to be interpreted as an early vindication of its high-profile climate change
strategy.
Sales for the six months to the end of September were up 6.5 per cent on the
same period last year to £4.2bn, despite "a tough market impacted by
unseasonable trading conditions" throughout the damp summer.
Advertisement
The company also reported that its green product lines had enjoyed a
particularly strong performance over the last year with Fairtrade food and drink
sales up 22 per cent year-on-year to £56m and organic food sales up 43 per cent
to £81m.
A spokeswoman for the company said it was too early to draw a clear
correlation between the company's strong sales performance and its
Plan A strategy
to limit the company’s carbon footprint and develop more sustainable products,
but she added that the early signs were that the initiative was enjoying some
commercial success.
"The sales growth in our eco-product categories is pertinent and these are
key areas that we are investing in expanding," she said. "We can’t at this time
draw a direct link with sales performance, but Plan A is a long-term strategy
and [M&S chief executive] Stuart Rose has been clear he believes a
sustainable business can be highly profitable."
The announcement comes as M&S also revealed it has started using food
waste to power some of its stores as part of a new biomass initiative that will
see it run six of its stores from carbon neutral biomass power stations by early
next year.
The company said it had already begun sourcing energy from an anaerobic
digester in Shropshire that generates renewable energy from household waste, and
would also begin start a similar biomass power station fuelled by cow slurry and
agricultural crops from next spring.
Rose said the move made M&S the first major retailer to use food waste to
power some of its stores, adding that the project was indicative of the changes
being undertaken under the Plan A strategy.
He added that the retailer would also extend its carrier bag charging trial
to 33 stores in the South West as it looks to reduce the number of plastic bags
customers use.
The company has been charging customers 5p per plastic bag at stores in
Northern Ireland for the past 16 weeks and has seen a 66 per cent reduction in
the number of carrier bags used while also raising £40,000 for a local
environmental charity.
"Our initial trial in Northern Ireland has shown us that introducing charging
does make customers think twice about the number of bags they use, which is why
we are extending [it] to the South West of England," Rose said. "If we see
similar results and get an encouraging response from our customers in the South
West, we plan to roll this out across the UK."
Comments
Have your say on this article