The hospitality industry is suffering as supermarkets take a bite out of their profits

Grocers benefitted from the closure of hospitality businesses suffering badly from Omicron. At the very least their VAT concessions should be extended, writes James Moore

A branch of All Bar One, owned by Mitchells & Butlers (PA)

A “piping hot performance” is how one analyst decried M&S’s latest numbers, a statement which to those of use who have followed the business for more than a few years feels almost as shocking as one of Boris Johnson’s speeches being rated as 100 per cent honest by a fact-checking organisation.

But there was no denying the quality of the latest trading update, with even the much-maligned clothing business showing growth for the second consecutive quarter. The real driver, however, was the company’s sparkling food business, long the jewel in its somewhat tarnished crown. There was also a nod to its Ocado joint venture, which M&S paid a pretty penny to buy into. That business has its own update to deliver but we were told that it did well over the festive season, with M&S products making up nearly a third of every basket.

Needless to say, Tesco, the sector kingpin, also enjoyed a bumper Christmas and upgraded its profit forecast as Sainsbury’s did the previous day. Grocers are all grappling with food price inflation, the cost-of-living crisis, the mess the government has created with their supply chains, and yet they’re living in wonderland. Tesco could make a full-year profit of as much as £2.6bn.