Marks & Spencer is accelerating investment in refrigeration and store infrastructure after last month’s record-breaking heatwave exposed the challenges facing food retailers as temperatures rise.
The retailer’s chief executive Stuart Machin told shareholders that some M&S food stores and foodhalls experienced refrigeration failures during a period of extreme heat, prompting a review of equipment across the estate.
Speaking at the company’s annual general meeting in London, Mr Machin said the business had been “struggling” during the nine-day heatwave and was now preparing its stores for significantly higher temperatures.
“We’re investing in equipment in our stores to deal with temperatures of 45C,” he said, adding that the company was also reviewing its refrigeration systems.
The disruption highlights a growing challenge for supermarkets, where maintaining strict temperature controls is essential for protecting fresh produce, chilled goods and supply chains.
Food retailers have traditionally designed systems around historical weather patterns, but increasingly frequent heat extremes are forcing businesses to rethink store operations and infrastructure investment.
During June’s heatwave, temperatures reached 37.7C, breaking the previous UK June record set in 1976. The Met Office has warned that temperatures of 40C have become increasingly possible, while extreme scenarios of 45C or higher cannot be ruled out in future climates.
For major retailers, adapting to hotter conditions is becoming a significant operational issue rather than a long-term environmental consideration.
The announcement came as M&S also faced shareholder pressure over employee pay.
Campaign group ShareAction, representing 14 institutional investors, called on the retailer to restore pay levels in line with the real living wage after its latest pay review left hourly rates slightly below the voluntary benchmark.
M&S increased pay for retail workers by at least 6.4% from April, taking wages to £13.41 an hour nationally and £14.74 in London.
However, this remains below the real living wage rates of £13.45 across the UK and £14.80 in London.
ShareAction chief executive Catherine Howarth said investors wanted the company to set out a clearer route towards ensuring all employees receive at least the real living wage.
M&S said it remained committed to being a sector leader on pay but highlighted rising business costs, including higher national insurance contributions and new packaging taxes.
Chairman Archie Norman said pay could return to real living wage alignment in the future but added that the company would need to assess the wider cost environment.
The retailer is continuing its expansion programme, with Mr Machin announcing plans to open its largest standalone food store in Godalming, Surrey.
The new store will feature dedicated areas for fresh produce, organic products, bakery goods and a kitchen shop as M&S continues its push to grow its food business.
For investors, the challenge is increasingly clear: adapting to a more volatile climate while maintaining profitability in a high-cost retail environment.
Leave a Comment