Marks & Spencer has declared a direct assault on the UK's dominant grocery players, launching a major offensive with more than 30 new budget-friendly food products this month. The high street icon is aggressively positioning itself as a genuine value contender to rival the traditional 'big six' supermarkets: Tesco, Aldi, Lidl, Asda, Sainsbury's, and Morrisons.
From Premium to Price-Conscious: M&S's Strategic Shift
Long celebrated for its premium own-label offerings, M&S is now being hailed as Britain's fastest-growing grocer among households, according to till data from analysts Worldpanel. This shift is backed by consumer sentiment: recent YouGov polling shows a three percentage point rise over two years in families willing to shop at M&S Food, with perceptions of its value jumping by a significant 10 percentage points.
The January rollout features essential staples designed for the weekly shop, including 500g and 750g packs of 5% fat beef mince and 1kg bags of frozen sweetcorn. This expansion is part of a broader, successful strategy. Sales across M&S's three core value ranges – 'remarksable value', 'dropped and locked', and 'bigger pack, better value' – surged by 20% in the third quarter of last year. Notably, the 'remarksable value' line has doubled in size since 2023.
What's in the Value Basket?
The retailer is keen to stress that these are not inferior 'entry level' products. "These are the same high-quality products customers expect from M&S but at a lower price point," a spokesperson confirmed, attributing the savings to direct investment in value. Top-selling items that have driven growth include loose bananas at 90p per kg, a substantial 1.5kg lasagne for £9, and a dozen free-range eggs priced at £3.30.
Specific successes are striking; sales of the new beef mince in the 'remarksable value' range have skyrocketed by 80%. Since 2023, over 40 products have been added to this line, such as Select Farms red cooking onions for £1.10, 500g of 0% fat Greek style yoghurt at £1.15, and 1kg of traditional Scottish oats for £1.25.
Kara Greatorex, Chief Commercial Officer at M&S Food, explained the philosophy: "For M&S, becoming a shopping list retailer is about offering core ingredients and products at the right price without compromising on quality... Families are now more likely than ever to come to M&S Food for trusted value." She noted there are now over 250 products across the retailer's three value ranges.
Battling in a Tough Market
M&S's aggressive move comes amidst a fierce battle for shopper loyalty as households continue to grapple with the cost-of-living squeeze. The latest figures from the British Retail Consortium (BRC) and NIQ show food inflation rose to 3.3% in December, up from 3% in November and far exceeding the broader shop price inflation of 0.7%.
While discounters like Lidl are making strong gains – adding 0.5 percentage points of market share in the 12 weeks to December 28 with sales up 10% – M&S is holding its own. The retailer's grocery sales grew by a robust 7.2% over the same period. With a stated ambition to double the size of its food business, M&S has pledged to continue its heavy investment in value, signalling that this price war is far from over.
