---
title: "Supermarkets face ‘triple whammy’ of problems, warns M&S"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287023964.md"
description: "Marks & Spencer warns that supermarkets face a 'triple whammy' of challenges: higher taxes, increased regulation, and global conflict, leading to a profit drop of nearly £150m. CEO Stuart Machin criticized the Chancellor's proposal for price caps on essential items, calling it a 'desperate' measure. Despite a 25% revenue increase to £17.3bn, profits fell from £511m to £364.6m, partly due to a cyber attack costing £131m. The British Retail Consortium urges the government to address underlying costs instead of imposing price controls."
datetime: "2026-05-20T07:28:33.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287023964.md)
  - [en](https://longbridge.com/en/news/287023964.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287023964.md)
---

# Supermarkets face ‘triple whammy’ of problems, warns M&S

Marks & Spencer has warned that supermarkets are being held back by a “triple whammy” of headwinds including higher taxes, burdensome red tape and disruption caused by the Iran war.

Stuart Machin, the chief executive of M&S, highlighted the problems facing grocers in a trading update on Wednesday which revealed that profits fell by almost £150m last year.

He issued the warning less than 24 hours after it emerged Rachel Reeves, the Chancellor, was pressuring retailers to start capping food prices, prompting a furious response from senior figures in the industry.

Mr Machin said: “Retailers face a triple whammy of headwinds with increased taxation, a greater regulatory burden and ongoing global conflict.”

He said overall profits fell from £511m to £364.6m in the year to March despite revenues rising 25pc to £17.3bn.

The drop in profits had been largely expected after M&S was hit by a crippling cyber attack last April, which forced it to take down its website and stop accepting orders.

M&S said the attack cost it around £131m last year.

Despite this, Mr Machin is attempting to deliver lower prices to rebuild momentum: “We have a clear plan and there is much within our control as we reinvest in value and quality for our customers.”

It remains unclear how the Chancellor’s price cap proposal will impact retailers if they have to sell goods at a loss.

Under the plan, the Treasury wants grocers to cap prices for essential items such as eggs, bread and milk. This is in return for relaxing some regulations.

However, the proposal has already prompted a swift backlash from the industry, which described it as a “desperate” attempt to tackle the recent cost of living crisis.

Helen Dickinson, the chief executive of trade group the British Retail Consortium, said the Chancellor should not be trying to force retailers “to sell goods at a loss”.

She said the Government should be focusing on reducing the public policy costs which are pushing up food prices in the first place rather than turning to “1970s-style price controls”.

Ms Dickinson added: “The UK has the most affordable grocery prices in Western Europe thanks to the fierce competition between supermarkets.”

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