Marks & Spencer has unveiled plans to double its annual dividend and double food sales over time, as the retailer set out the next phase of its turnaround at a capital markets day in London on Tuesday 10 November 2026.

The FTSE 100 retailer said it was targeting mid-to-high single-digit sales growth over the medium term, with profit growing faster than sales. The full-year dividend for 2026/27 will double to 8.4p a share, up from 4.2p, with future dividends intended to grow at least in line with earnings.

Food leads the growth plan

Food remains at the centre of the strategy. M&S said the division had grown annual sales by more than 50 per cent since the 2021/22 financial year and was now targeting a doubling of sales over time, alongside an operating margin of around 5 per cent.

The ambition builds on a strong first half. Food sales rose 13.9 per cent to £5.2 billion in the six months to 26 September 2026, with volumes up 11.9 per cent and adjusted operating profit of £288.6 million at a margin of 5.6 per cent.

Sales of M&S food through Ocado Retail rose 22.8 per cent over the same period. Chief executive Stuart Machin said last week that the food business was “ahead, delivering double-digit volume growth in a flat market”.

Fashion targets more online sales

In Fashion, Home & Beauty, M&S aims to take online sales towards 50 per cent of the division’s total, with operating margins above 10 per cent in both online and stores. The estate will be reshaped around about 180 highly productive stores.

The group also reaffirmed that it remains on track to deliver £600 million of structural cost savings by 2027/28 and expects positive free cash flow in each of the next three years.

The targets follow half-year results published on 4 November, when M&S reported adjusted pre-tax profit of £403.2 million, more than double the £184.1 million reported a year earlier, when trading was disrupted by a cyberattack. Group sales rose 16.2 per cent to £9.26 billion.

Shares edge higher

Shares in M&S were trading at about 440p in London on Tuesday morning, up from a previous close of 437.6p. The shares have risen by more than a third so far in 2026.

Investors will now watch whether the retailer can turn the new targets into sustained cash generation. Doubling the dividend only pays off if the growth plan delivers the free cash flow to support it, and the fashion division still faces availability constraints and higher fulfilment costs.

For now, the market has taken the plan warmly. M&S has rebuilt momentum since the cyberattack, with food leading the recovery, and the capital markets day sets the clearest statement yet of how far management believes the business can go.