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LONDON, July 4 (Reuters) - British retailer Marks & Spencer's food business has made "a good start" to its 2023-24 financial year, the group's boss told investors on Tuesday.
Chief Executive Stuart Machin said M&S took a 130 basis points hit to its food margin in its 2022-23 year as it decided not to pass through the full impact of cost inflation on to its customers. He said the group still grew sales.
"That has given us a good start by the way into this year," he said at the retailer's annual shareholders' meeting, which was held virtually.
Machin cautioned that food prices won't come down as quickly as they went up.
"I'm slightly worried about deflation, because it's not going to come down as quick as the inflation," he said.
"Now we're tracking that really carefully and trying to pass that on as well to customers."
M&S is Britain's fastest growing food retailer after discounters Aldi and Lidl, according to the latest data from market researcher NIQ.
Separately on Tuesday, Sainsbury's, Britain's second largest grocer said food inflation was falling. (Reporting by James Davey; editing by William James)
