Marks & Spencer has unveiled significant updates to its online channels, marking a crucial step in its strategy to expand market share in clothing and home sectors.
- The retailer has set ambitious goals, targeting a 1% increase in market share and an operating margin exceeding 10%.
- Currently, e-commerce constitutes 32% of Marks & Spencer’s sales, with aspirations to elevate this to 50% by 2028.
- Recent digital enhancements include expedited page loading, increased personalization, and a streamlined customer experience.
- The Sparks app plays a pivotal role, accounting for 44% of online sales, and has seen significant user engagement through interactive features.
Marks & Spencer has taken decisive steps to improve its digital offerings, aiming to fortify its position in the clothing and home market. The company’s recent announcement underscores a commitment to digital transformation, as it pursues an ambitious goal of increasing its market share by 1% and achieving an operating margin of over 10%. E-commerce is central to this strategy, with the retailer aiming for it to account for 50% of sales by 2028.
The retailer has observed notable progress, with e-commerce currently making up 32% of its sales, an increase from 22% five years ago. Key updates implemented today coincide with the launch of new season collections, focusing on enhancing user experience. Among these improvements is a reduction in page loading times by half a second, a change expected to elevate the overall shopping experience.
Stephen Langford, director of online and omnichannel at Marks & Spencer, highlighted the role of generative AI in shaping 80% of the product descriptions. Additionally, the company has reduced the number of customer-facing links by 40%, aiming for a more intuitive navigation experience. Increased personalization on its website and Sparks app ensures that consumers receive content that is more relevant to their interests and preferences.
The Sparks app, which currently contributes 44% of the brand’s online sales, has grown from 37% in the previous year. The app’s success is built on interactive features, such as quizzes that inform its Style Tips tool, leading to curated outfit suggestions. To date, 450,000 users have engaged with these quizzes, providing valuable data to enhance the shopping experience.
Marks & Spencer’s focus on online channels has also led to a higher acquisition of new customers, with two-thirds coming through these platforms. The company has increased its investment in social media, with spending rising by 79% year-on-year, outpacing traditional TV advertising. Live shopping, which began in 2022, has seen over 300 shows and attracts approximately 17,000 viewers per event.
These advancements are already reflected in Marks & Spencer’s womenswear offerings and are set to expand to menswear, home, and kidswear categories. The retailer reports a 5.3% increase in sales for the clothing and home division year-on-year as of March 2024, alongside a 21% rise in adjusted operating profit to £402.8m. The market share for clothing has climbed from 9.6% to 10%, with an operating margin reaching 10.3%.
Marks & Spencer’s strategic digital enhancements have positioned it well for future growth in the competitive retail landscape.
