Marks & Spencer’s beloved Percy Pig sweets have simply landed in Goal shops throughout the US, however their American journey could also be minimize brief amid considerations over President Trump’s new 10% import tariffs on UK items.
Archie Norman, chair of M&S, advised the Retail Know-how Present in London this week that the retailer was reassessing the affect of the new commerce limitations on its formidable US growth. “We might have to change our minds,” he stated. “Tariffs could push up prices and make [Percy Pig] less popular.”
Described by Norman as M&S’s “gift to America”, Percy Pig formally launched within the US on 30 March in what the retailer referred to as the model’s “biggest journey to date.” However whereas there are not any instant plans to withdraw the product, greater prices from tariffs might problem competitiveness — a selected concern for confectionery traces in a crowded and price-sensitive market.
The transfer comes as a part of President Trump’s broader announcement of sweeping new tariffs, together with a blanket 10% responsibility on all UK imports, fuelling worries amongst British exporters throughout a number of sectors.
Festive advertising and marketing rethink amid HFSS restrictions
Norman additionally revealed that M&S is rethinking its 2025 Christmas promoting marketing campaign, in response to the UK authorities’s incoming ban on HFSS (excessive fats, salt and sugar) meals advertisements earlier than 9pm, which is because of come into drive in October 2025. “It probably means we can’t run our Christmas ad,” Norman stated. “You won’t be able to run an ad that includes Christmas pudding, your mince pies or sausages.”
He urged the regulation, geared toward tackling childhood weight problems, might drive retailers to make substantial adjustments to their festive advertising and marketing methods, notably these centred round conventional seasonal meals.
Whereas M&S’s clothes and homewares ranges will stay unaffected by the principles, food-focused campaigns will possible have to be closely tailored — both restricted to post-watershed slots or edited to exclude HFSS gadgets. “There could be the equivalent of a traditional ad which can only run before the watershed or one that doesn’t feature mince pies [that could run at any time],” Norman stated, hinting at a extra advanced artistic course of for 2025.
Regulatory headwinds and retail technique
Norman, a former Conservative MP, warned that the retail sector faces a wave of regulation — from packaging and sustainability necessities to labour requirements — which might hit smaller companies notably onerous. “M&S will manage with everything as we are a growing business with no debt,” he stated, “but for the little guy these things become really damaging. It’s going to be tough for some people.”
He additionally solid doubt on the profitability of quick grocery supply and loyalty pricing fashions. “Online food retail is a desert of profit,” he stated — albeit acknowledging this was “an exaggeration” — and cited huge personal fairness losses in firms like Gorillas.
As an alternative, M&S will focus its Sparks loyalty scheme on personalised engagement quite than reductions for cardholders, which Norman dismissed as providing little long-term worth.
Whereas M&S stays assured within the long-term outlook for its three way partnership with Ocado, the remarks spotlight a broader scepticism in regards to the economics of on-line meals retail and fast supply fashions.
