High streets could see major revival as middle-class shoppers 'fall back in love' with M&S

The two supermarkets had an equal share of the grocery market over the festive period.

In the 12 weeks to December 30, both stores had a 3.8 per cent share of the market.

However, figures now show this was an improvement for M&S from the previous year when it totalled 3.7 per cent, while Waitrose’s share fell from 3.9 per cent.

Richard Lim, chief executive of Retail Economics, said: "There is a lot of strong momentum behind M&S. There is every chance that they could overtake Waitrose in the coming months."

New data estimates that almost three in 10 households shopped at M&S in December - rising from 27 per cent in the same period last year.

Analysts at BNP Paribas have suggested that M&S are likely to be the “Christmas winner” among the supermarkets.

LATEST DEVELOPMENTS:

• Waitrose warns shoppers of packaging error that has made some food 'unsafe to eat'
• Tesco issues warning: Red Sea shipping conflict could lead to inflation-hiked prices, says CEO
• Sainsbury’s announces jump in sales as food and drink inflation slows

M&S has been fighting back against Waitrose over the past year, after adding around 1,400 new products to its food lines in the current financial year.

Industry magazine Retail Week also predicted M&S would overtake John Lewis - which owns Waitrose - in size by 2026.

In August, M&S returned to the FTSE 100 following a turnaround led by chief executive Stuart Machin.

Lim added: "M&S have really worked hard to get their food proposition and the food appeal, really relevant and really right.

"The way that they’ve managed to increase their market share has essentially come at the expense of Waitrose, given the kind of the overlap of core customer groups."

In 2023, M&S announced proposals to spend almost £50million on opening new stores in Northern England, as well as a £23million investment into its London stores.

In contrast, Waitrose’s owner, the John Lewis Partnership, has been trying to cut millions of pounds worth of costs after posting an annual loss of £234million last year.

A spokesman for Waitrose said: "We are confident about our performance. Our quality, value and service is attracting new customers and over the Christmas and New Year period we were one of only four grocers who grew customer numbers relative to the market."