Investment opportunities at M&S questioned: should one consider buying M&S shares, ponders MAGGIE PAGANO

M&S Announces Major Expansion in Food Business

Market leader Marks & Spencer (M&S) has announced ambitious plans to double its food sales and modernize its supply chain with the construction of a state-of-the-art distribution center in Northamptonshire. The new facility, costing £340million, is set to open in 2029 and will create 1,000 permanent jobs and 2,000 during construction.

The expansion comes as M&S's food business continues to thrive. According to market research and consumer insight firm Nielsen IQ, M&S and Waitrose are running neck and neck, with M&S having around 3.7% compared to Waitrose's 3.8%. This is a significant improvement for M&S, as it catches up with its competitor in the race to compete at the posher end of the market.

Alex Freudmann, managing director of M&S's food business, has expressed his ambition to make M&S a place for the weekly shop rather than the occasional one. To achieve this, M&S aims to open bigger and fresher stores, and update existing ones. The company currently operates 230 full-line food shops and 324 food halls, many of which are due to be upgraded.

The new distribution center will play a crucial role in this modernization. It will modernize M&S's supply chain, enabling the company to offer fresher and more diverse products to its customers. The facility will be M&S's biggest food distribution center, reflecting the company's commitment to its food business.

Meanwhile, rival WH Smith has faced a setback. The company's shares plunged more than 40% due to an accounting error, wiping over £500million off its value. WH Smith has discovered a £30million accounting error in its North American business, overstating profits. In response, WH Smith sold its UK high street stores earlier this year to focus on global travel retail.

Despite these challenges, M&S remains focused on its growth plans. With the new distribution center and its ongoing store upgrades, M&S is well-positioned to continue its success in the food market. The company's food sales last year jumped 8.6% to £9billion, outperforming all other supermarket groups.

As M&S moves forward, it is clear that the company is committed to providing its customers with the freshest and most diverse food products, and to becoming a go-to destination for the weekly shop. With its ambitious plans and strong performance, M&S is set to continue its dominance in the food market.

Investment opportunities at M&S questioned: should one consider buying M&S shares, ponders MAGGIE PAGANO