M&S is reportedly looking at a new distribution centre, as the retailer responds to growing online demand for both fashion and homeware.
Property experts suggest that M&S is considering a one million sq ft site in the Northamptonshire region. This follows work to modernise its supply chain, M&S has invested in increased automation including at its Bradford centre.
The retailer said that a new warehouse deal would be part of its “strategy to reshape M&S for growth”. It is therefore always keeping an eye on what’s in the market.
The retailer is working towards having 600 stores, of which 180 will be full-line stores selling clothing and home products alongside food, and 420 will be food stores. Marks & Spencer delivers its groceries to online shoppers through Ocado Retail, its joint venture with Ocado. Its own online business, M&S.com, is dedicated to its clothing and homewares range.
Furthermore, M&S is looking for 50% of its clothing and home sales through its own website taking place online. It will invest in its mobile app customer experience and engagement as part of its ambition to move to a “truly personalised customer experience” as well as growing its work with partner brands.
“All of this,” it says in full-year results, “will help to retain customers within our M&S eco-system.” The retailer plans to make improvements to fulfilment, while a supply chain modernisation programme is already underway.
In its latest full-year, M&S online sales grew by 7.8% to £1.3bn, with 32% of clothing and home sales taking place online. Sales via the M&S app accounted for 44% of online orders, up from 37% in the previous year. Its brand strategy saw a 33% rise in partner brand sales through the M&S website. During the year, M&S.com saw 9.4mn active customers (+2.2%).
This harnesses a company profile from the RetailX UK Top 360° report. The full profile, which is one of eight, is part of a briefing on the UK market as a whole.
This report looks at how shoppers buy and want to buy, the retailers, brands and marketplaces that are succeeding in this market, and the services that the most successful provide to their customers.
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