Roll out develops retailer’s multichannel offer in the hope of stemming the tide of falling profits

Roll out develops retailer’s multichannel offer in the hope of stemming the tide of falling profits

Marks and Spencer (M&S) recently launched a free next-day instore collection service for customers to boost its multichannel offer. But the move did not come in time to contribute to a dip in profits of 10%.

The variety retailer yesterday reported a fall in profits of 9.6% to £290 million in the six months to 29 September.

But Marc Bolland, Marks and Spencer chief executive, highlighted better performance in the second quarter and stated that food outperformed the market on a like-for-like basis.

“Eighteen months in, we are making strong progress with our plan to transform M&S into an International multichannel retailer,” he stated, referring to its £2.4-billion modernisation and e-commerce investment plan. “Our new International stores are performing well, and our Multi-channel business is delivering strong growth,” he added.

Extending multichannel scope and coverage

The new next-day instore collection service includes orders made by phone, instore, online or through the M&S mobile website before 12pm. Items can then be collected from midday the following day from over 450 stores including a number of its M&S Simply Food format.

The retailer also last week announced plans to enter four new European markets on Monday 19 November, with the launch of localised e-commerce websites in Germany, Spain, Austria and Belgium.

Laura Wade-Gery, executive director of e-commerce multichannel at Marks and Spencer, commented: “Entering these countries with online capabilities allows us to serve customers right across some of the biggest and fastest growing online fashion markets in Europe.

“Since 2008 we've been in dialogue with the customers who already use our international delivery service and we've learnt much from them. With our new sites we can provide customers with what they want – a fully localised service that enables them to shop with M&S in the way they want to.”