M&S is upping the pace. This Wednesday, its leadership team told investors of plans to accelerate its turnaround plan amid a “background of adverse macro-economic conditions”. The aim is to create a “higher productivity business, reducing costs, increasing margins and shifting volume into growth categories and channels”.

Crucially, it is going to speed up changes to its store estate, shutting down nearly 70 full-line clothing stores and opening more than 100 food shops in the next three years. 

This has been a long-standing goal for M&S CEO Stuart Machin, who was pushing a food-focused strategy in his former role as Food MD. 

But this isn’t his only change to the business. It comes on top of some less headline-grabbing developments over the past few months, which signal a positive direction of travel for M&S.

First, there’s the acquisition of its logistics provider Gist a couple of weeks ago. This will save M&S money in the long run as it looks to modernise its food supply chain network. 

Then there’s the move to open larger stores with space to display the full food range, which is already driving bigger baskets. In its newly refurbished Llandudno store in North Wales, where space for food was increased by a third (including a bigger café), sales have increased by 75%.

M&S has also promised to invest over £200m in pricing across food, clothing and home in the next three years. This builds on recent work around its Remarksable value range to attract families on a tighter budget, and adapt to the cost of living crisis. This is already changing perceptions.  At a recent media event, one Sainsbury’s senior leadership team member revealed M&S was now seen as a direct rival.

All of this has been underpinned by an evolution in the company culture. One source said Machin was a more “relatable” and “approachable” leader than predecessor Steve Rowe. He still spends much of his time visiting branches and is keen to ensure an open line of communication between the higher ranks and those working on the shop floor.

His ‘Straight to Stuart’ scheme enables M&S staff to directly pitch innovative business ideas (the new toilet paper packaging featuring bowel cancer awareness messages came from there). Likewise, the monthly ‘Straight from Stuart’ newsletter, which details what he has been up to as CEO, is proving popular among both colleagues and social media followers.

While these are not necessarily things that will drive up stock prices – it’s worth remembering shares are still down more than 50% compared with last year – they signal a distinct departure from the M&S of recent years, one that at times struggled to embrace change while holding on a little too tightly to its core values. 

So despite a flurry of criticism from investors and industry voices alike over chairman Archie Norman’s decision to have a triumvirate of leaders – Machin, co-CEO Katie Bickerstaffe, and CFO Eoin Tonge, soon leaving to take up a role at Primark’s owner ABF – it seems the tune might be changing.

As one Shore Capital analyst put it this morning: “M&S has a credible team to expedite its plans.”

Shareholders are still understandably cautious – after all, there is an economic storm to navigate and no retail business is safe from the headwinds still to come. But Shore Capital believes “good work has been achieved by the group on building financial resilience” and that Machin’s team has ”a sensible” growth plan in place.

“In febrile financial markets and tough economic times, M&S will, in our view, survive and be a better business still to cope with what is on the other side of a present recessionary trend with UK consumer confidence on its knees,” it says. As such, “in due course a much higher share price can follow”.

Peel Hunt analysts agree “there is no doubt that this is an improving version of M&S”. Encouragingly, it says “the shares could well outstrip the rest of the sector when the economic corner is turned”. 

It all bodes well for its quarterly results coming up next month, and the looming Christmas period. Now is the time for M&S to reassure the market – and its loyal shoppers – that if they stick with it, the decision will pay dividends.

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