01 Jul 2009
The online operation of Marks & Spencer (M&S) generated 28 per cent year-on-year growth in its latest financial quarter, and the retailer said consumer spending appears to be stabilising.
The sales growth at M&S Direct follows the introduction of a project focused on online improvement. Some changes in the navigational structure of the web site have already been introduced and a major refresh is scheduled to go live in the autumn.
“We are pleased with the improving trend in our performance. This demonstrates that the actions we are taking are working,” said M&S chairman Stuart Rose.
“Consumer confidence appears to be stabilising. However, we remain cautious about the outlook for the remainder of this and next year and will continue to run the business accordingly,” said Rose.
Services such as international delivery, wine club and gift card redemption, with better product availability and order fulfilment capability, are expected to be part of the web site’s new features.
Despite the growth online, UK like-for-like sales at M&S decreased by 1.4 per cent in the 13 weeks to 27 June, after a fourth-quarter drop of 4.2 per cent.
The news that M&S online sales have risen by 28% highlights the fact that consumers are increasingly turning to online shopping in the recession (Web sales brighten up M&S results, Computing, 01 July). However, retailers must remain aware that consumers will only make purchases if their online experience is right and replicates the high quality in-store environment.
Most mid-tier fashion & lifestyle retailers would admit that their current eCommerce solution bears little resemblance to the in-store experience. Their online product ranges are often limited, stock information is at least a day out of date, and there is no link between online and in-store activity which, for example, means that customers cannot purchase via the internet and then return a product to a store. As a result, these retailers cannot meet their customers' online expectations.
Retailers must now evolve beyond stand-alone attempts at e-tailing. By creating a seamless strategy across the supply chain, customer service and performance measurement, retailers will be able to drive quantifiable value from every sales channel.
Today, every fashion retailer recognises that true multi-channel retail is the future, but few have achieved that goal. However, by adopting an integrated approach that delivers consistent customer experience, a profitable multi-channel retail strategy is now finally within the reach of these mid-tier businesses. By implementing a properly integrated solution that uses a single product catalogue, a single customer loyalty system, a single payment system and a single stock system retailers can achieve that multi-channel vision.
Yours Sincerely
Sam Jackson
Chief Executive
Prologic
www.prologic.com
Posted by: Sam Jackson, Chief Executive, Prologic 09 Jul 2009
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