Twitter
Facebook
Linked In
RSS
Login or Register
New to InternetRetailing?
Register Now
Internet Retailing
IREU Top500 The Customer Report: 2018

IREU Top500 The Customer Report: 2018

You are in: > Home > Research > IRUK

This is your 1 complimentary article for this month

Become a member for unlimited and immediate access.


Register
Already a member? Log in here

Marks & Spencer unveils 23.4% rise in online sales as it takes action to boost falling profits

Linked InTwitterFacebookeCard
Marks & Spencer unveils 23.4% rise in online sales as it takes action to boost falling profits
Marks & Spencer unveils 23.4% rise in online sales as it takes action to boost falling profits
Marks & Spencer this week unveiled a 23.4% rise in online sales, after a year in which a record 7.4m customers clicked to buy. But ecommerce growth came as overall sales showed more modest growth, and pre-tax profits fell by a fifth – and chief executive Steve Rowe responded today by setting out a plan to improve sales and profitability.

The clothing to homewares and food retailer, which sells online and through stores in the UK and Europe, said that mobile continued to be its fastest-growing sales channel, while shoppers increasingly use more than one device when they buy. But while online sales grew by 23.4% over the year, growth slowed to 8.2% in the fourth quarter, contrasting sharply with first-quarter growth of 38.7%.

That's a slowing in online sales that M&S, a Leading retailer in IRUKTop500 research, acknowledged in its full-year results statement. "We are operating in difficult and challenging times – consumer confidence has dipped, the clothing market is flat, online sales have slowed and there's deflation in the food market," it said. "Our customers are changing too as they become increasingly style and healthy conscious, shop around and expect more.

"Analysing the shopping habits and behaviours of the 32m customers who shop with us has shown that they carry a deep-rooted affection for M&S but, for some, M&S is no longer their first choice." The retailer said that by listening to its shoppers it had found common themes and insights that now form the basis of plans that aim to make "every moment special for our customers". That will include putting customers at the heart of M&S, while also taking action to improve clothing and home sales, improving products and the customer experience while cutting prices, and growing food sales through measures including building convenience.

Chief executive Steve Rowe warned that taking action by increasing staffing and reducing prices would impact short-term profits. He added: "We are, however, confident that our commitment to delivering the right product, price and service will help return clothing and home sales to growth."

The update came as M&S reported group revenue of £10.4bn in the year to March 26 (and £10.5bn in the 53 weeks to April 2), of which £9.3bn (£9.5bn, 53 weeks) came from the UK market and £1bn (£1bn, 53 weeks) from international sales. Across the group, revenues were 0.8% up in the year: UK sales in the year were up by 1.1%, but international sales were down by 2%. Pre-tax profits of £483.3m were down by 19.5% (£488.8m, 53 weeks, -18.5%).

More than 4m customers have so far signed up for its new Sparks membership club, which promises to personalise benefits for customers.

Linked InTwitterFacebookeCard

Become a Member

Create your own public-facing profile
Gain access to all Top500 research
Personalise your experience on IR.net
Internet Retailing
We are the magazine, portal and research source for European ecommerce and multichannel retail, hosting the board-level conversation for retailers, pureplays and brands across all of our platforms. Join the conversation.

© InternetRetailing Media

Latest Tweet

Internet Retailing
Tamebay
eDelivery
Twitter
Facebook
Linked In
Youtube
RSS
RSS
Youtube
Google
Linked In
Facebook
Twitter