Tesco and Marks & Spencer both reported robust food sales during the crucial Christmas trading period, navigating a challenging economic environment to achieve notable growth.

Tesco's UK sales increased by 3.2% compared to the previous year, resulting in the company achieving its highest market share in over a decade. Marks & Spencer (M&S) also experienced a surge in customer numbers over Christmas, with food sales demonstrating "strong" performance, up 5.5%. M&S attributed this growth to its "Christmas hero lines," along with strong performance in Italian ready meals, in-store bakery, and deli sections. Chief Executive Stuart Machin highlighted the company's market share gains, stating that the food business continued to outperform.

However, M&S faced challenges in its clothing, home, and beauty division, with sales declining by 2.9%. The company cited lower High Street footfall and ongoing repercussions from the previous year's cyber-attack, which led to stock and inventory issues, as contributing factors to the decline.

The strong performance in the food sector for both retailers indicates a resilient consumer demand for festive food and related products, even amidst economic uncertainty. This suggests a potential shift in consumer spending habits, with a greater emphasis on at-home dining and entertaining during the holiday season.

Looking ahead, both Tesco and M&S will need to address the challenges in their non-food divisions while capitalizing on the momentum in their food businesses. For M&S, resolving the lingering issues from the cyber-attack and adapting to changing consumer preferences in the fashion, home, and beauty segments will be crucial for future growth.