Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Thursday, Apr 25, 2024

Shopping may never be the same again, says M&S

Shopping may never be the same again, says M&S

Customers "may never shop the same way again" after the coronavirus crisis, Marks and Spencer's boss has said.

"Whilst some customer habits will return to normal, others have changed forever," Steve Rowe said.

The pandemic has driven several changes, including a shift to online, customers cooking more from scratch and buying more casual clothing.

T-shirt bras and bathroom products online sales have risen, while it is barely selling any suits or ties.

The retailer has also found that as shoppers are visiting the shops less, they are planning what to eat further in advance, and also buying more herbs and whole vegetables.

It said that customers are buying bigger product packs, such as of strawberries or chicken. Sales of frozen items are also up by 75% on the year in the UK.

M&S added that online shoppers were now browsing earlier in the day, between 15:00 and 17:00.

As more customers work from home, desktop visits were also up 38% in comparison with the same period last year.

But M&S is one of the few big food retailers without its own internet-based delivery service.

This has hampered the chain as customers have needed to purchase items online during lockdown if they are self-isolating, for example.

However, the retailer's partnership with Ocado starts in September this year, replacing the online grocer's existing deal with Waitrose.

In a new announcement, M&S said the delivery service would also include over a thousand non-food items meaning customers will soon be able to buy cushions or underwear alongside their eggs or bread.

Mr Rowe said that Ocado's strong performance during lockdown "further reinforced" the value of the deal for delivering groceries.

The impact of the virus lockdown has driven "effects and aftershocks" in the retail sector that would "endure for the coming year and beyond," Mr Rowe added.

Neil Wilson, chief market analyst at Markets.com, said: "Covid-19 has accelerated lots of consumer trends and it may just be the catalyst required to accelerate Marks and Spencer's transformation into a 21st century retailer.

"In particular it looks as though M&S has learnt just how important online is - so it's making its Ocado venture more central to the business."


Transformation plan


M&S was already undergoing a transformation plan led by its chief executive Steve Rowe which included cutting costs and closing some stores.

The firm said that due to the pandemic, those measures would be sped up under a programme called "Never The Same Again".

Those include buying clothing from fewer core suppliers, reducing the clothing and home ranges, as well as "the replacement of ageing stores".

"The trauma of the Covid-19 crisis has galvanised our colleagues to secure the future of the business," said Mr Rowe.


'Mountain of unsold stock'


The company has been facing increasing competition from fashion giants such as Primark on the High Street and Asos on the internet in recent years.

In the year to March, M&S said its clothing sales fell by 6.2%, whereas its food sales were up 1.9%.

To add to its problems, M&S's non-food stores have been forced to shut under the lockdown measures.

As a result, it faces a "mounting backlog of unsold stock" in its warehouses, it said.

Clothing and homeware sales fell by 75% in the six weeks to 9 May. Food sales also fell, by 8.8%, although M&S said many of its Simply Food stores were trading strongly.


Sales hit


The firm said that lockdown measures, social distancing and lower consumer demand were "likely to continue through the year", adding that the coronavirus pandemic means that its performance over the next year is difficult to predict.

It is working on a scenario that assumes a sales hit of £2.1bn over the next year across clothing, home, food and international sales.

Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, said: "Overall, M&S was facing challenges before coronavirus and these have simply been exacerbated.

"Within the difficulties there are real opportunities too, and the group appears to have a lot of the right ideas, but the next chapter really needs to be about execution."

Its comments came as M&S said its profits for the year to March had dropped by more than 20% to £403m, from £511m in the previous year, as its troubled clothing business continued to struggle.

Newsletter

Related Articles

Hong Kong News
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
×