Marks & Spencer is investing in new refrigeration equipment to cope with extreme temperatures of up to 45C, following a June heatwave that caused fridges to break down in some stores. Chief executive Stuart Machin told shareholders at the annual general meeting in London that the retailer struggled during nine days of extreme heat and is now reviewing its refrigeration infrastructure.
Refrigeration Failures During Record Heat
Mr Machin said: “There’s no doubt we were struggling in those nine days of extreme heat. Now we’re investing in equipment in our stores to deal with temperatures of 45C. We’re reviewing all our refrigeration as well.” The June heatwave saw temperatures reach a new record of 37.7C, surpassing the previous June record from 1976. Food stores and supermarkets across the country reported fridge issues during this period.
Future Temperature Projections
Forecasts suggest temperatures could rise to 45C or higher in the future. The Met Office warned last year there is a 50:50 chance of temperatures reaching 40C within the next 12 years, with extreme heat risks increasing due to climate change. The Met Office also presented a plausible forecast for June 2056 showing peaks of 45C in England, following the UK's first recorded 40C in 2022.
Shareholder Pressure on Living Wage
At the AGM, shareholder activists from ShareAction, representing 14 institutional investors, urged M&S to reinstate the real living wage. M&S increased pay by at least 6.4% from April 1, setting wages at £13.41 an hour nationwide and £14.74 in London. This exceeds the UK-wide national minimum wage of £12.71 but falls short of the real living wage, a voluntary benchmark currently at £13.45 in the UK and £14.80 in London.
Catherine Howarth, chief executive of ShareAction, said: “We are concerned that the company’s most recent pay review has resulted in pay rates that no longer match the real living wage.” She added that investors encourage M&S to strengthen disclosures and set a clear path toward ensuring all workers receive at least the real living wage.
M&S chairman Archie Norman noted that the company may realign pay with the real living wage “after next year,” but would “see how it goes.” M&S stated that while it aims to be a sector leader in pay, it has faced cost pressures including a national insurance contribution hike and £40 million in new packaging taxes.
New Store Opening
Mr Machin also announced the opening of M&S's biggest standalone food store on July 16 in Godalming, Surrey. The store will feature multi-temperature areas for herbs, organic produce, and fruit, an in-store bakery, and a kitchen shop.
