{
  "id": 7803386,
  "title": "Marks and Spencer shares slide as investors brace for inflation hit",
  "url": "https://urgent.news/2026/09/16/marks-and-spencer-shares-slide-as-investors-brace-for-inflation-hit",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-16T14:20:41.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/marks-and-spencer-shares-slide-as-investors-brace-for-inflation-hit/"
  },
  "original_language": "en",
  "account": "Shares in Marks and Spencer have fallen as investors worry that higher inflation will drive shoppers away from the upscale grocer and towards its cheaper competitors. The UK's biggest food retailer, which generates over half of its revenue from its food division, saw its stock drop by up to four percent on Wednesday, reaching 357p per share. This decline came after the Office for National Statistics reported that inflation hit a five-month high of 3.1 percent in August, with food inflation remaining steady at 1.3 percent. Analysts believe the sell-off was triggered because higher inflation increases the chances of the Bank of England raising interest rates soon. The central bank is expected to keep rates unchanged on Thursday, but economists anticipate hikes later this year, potentially totaling four in the next year. Such rate hikes could strain consumers' budgets and prompt them to shop at more affordable alternatives to M&S Foods. Chris Beauchamp, IG's chief market analyst, explained to City AM, \"Investors are betting that the Bank of England may need to join its peers in increasing rates, putting pressure on consumer wallets.\" According to Richard Hunter, head of markets at Interactive Investor, the recent inflation figures \"could put more strain on the consumer wallet,\" and M&S, being seen as a premium food provider, may have suffered the most. Tesco and Sainsbury's, M&S's peers on the FTSE 100, also dipped more than one percent on Wednesday, though they are less associated with premium offerings and have been reducing prices in recent years. Dan Coatsworth, head of markets at AJ Bell, suggested that M&S' share price drop could also be due to disappointment that food inflation isn't as high as expected, as an increase might indicate grocers charging more or absorbing costs they previously hadn't. While food inflation has dropped recently, the Food and Drink Federation (FDF) and the British Retail Consortium have urged the government to intervene to prevent it from rising, by cutting energy bills and reforming business rates. M&S has relied on its strong food division to help it recover from a cyber attack last year that shut down its website. The grocer's sales have risen 14.8 percent compared to the previous year, according to Worldpanel by Numerator. M&S did not respond to requests for comment.",
  "summary": "Shares in Marks and Spencer have taken a dip as investors fear that rising inflation will push shoppers away from the upmarket grocer and towards its budget rivals. FTSE-100-listed M&S, whose food arm accounts for more than half of its revenue, dropped as much as four per cent on Wednesday to 357p. The share price [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}