Marks and Spencer Group PLC (LSE:MKS) rose 2% on Wednesday after launching its annual clothing and home Christmas advert campaign, reminding investors of the importance of the festive period for retailers.
Working with actors and artists Hannah Waddingham, Zawe Ashton, Sophie Ellis Bextor and Tan France, the food and clothing retailer launched its “love thismas, not thatmas” campaign.
Set to be showcased via TV adverts, digital billboards, print cover wraps, and other platforms, the campaign starts the annual tradition of retailers, particularly supermarkets, of heavy advertising, often showcasing high-end commercials backed by covers of famous hits.
While a well-executed Christmas ad can prove useful for companies, campaign or not, customers are expected to flock to highstreets.
A hiring process is underway at M&S to bring in 10,000 temporary workers for the Christmas period, with vacancies spanning every store in the UK.
Last year, M&S reported sales of £3.3 billion in the thirteen weeks to December 31, 2022, representing a 9.7% year-on-year jump.
Boss Stuart Machin remained cautious to lift profit guidance on the back of the strong performance, pointing to cost pressures which had been wearing away at margins.
One would wonder whether the same pressures will cause a repeat of 2022.
Weaker spending is, once again, expected for Christmas 2023 when considering inflation – a likely result of shoppers looking to downtrade or cut the number of gifts bought.
Shares in M&S are up more than 75% in 2023, having opened trading on Wednesday at around 219p.