Marks & Spencer has announced a series of updates to its digital platforms, aiming to enhance its market share in clothing and home.
- The retailer aspires to grow its clothing and home market share by 1% and boost its operating margin to over 10%.
- Currently, ecommerce accounts for 32% of sales in clothing and home, up from 22% five years ago.
- Today’s updates feature improved page load times and AI-generated product descriptions for 80% of items.
- The Sparks app, which dominates 44% of online sales, has witnessed a substantial increase in personalised content.
In a bid to elevate its market presence, Marks & Spencer has unveiled a suite of enhancements to its digital channels, focusing on growing its clothing and home market share by 1% and exceeding a 10% operating margin. Ecommerce is a crucial element of this strategy, with the company reporting that 32% of sales now stem from online platforms, an increase from 22% over a five-year period.
The latest updates, released in conjunction with the autumn/winter 24 collection, are designed to enrich the digital shopping experience. Page loading times have been accelerated by half a second, improving overall user convenience. Furthermore, generative AI now crafts 80% of product descriptions, streamlining content production.
Customer experience is further refined by reducing the number of links presented on digital interfaces by 40%, creating what the company describes as a “more intuitive” browsing environment. Personalisation has also been amplified on the website and Sparks app, increasing the platform’s appeal and relevance to individual users.
The Sparks app has become a cornerstone of Marks & Spencer’s digital outreach, accounting for 44% of online sales — a rise from 37% the previous year. With 5 million active users, the app continues to grow, offering quizzes on body shape and style preferences to further tailor the shopping experience. Notably, two-thirds of new customers have been procured through online channels, with digital advertising spend climbing by 79% year-on-year, outstripping television advertising expenditures.
Live shopping, introduced by the retailer in 2022, has continued to draw engagement, with an average of 17,000 viewers per show. Initially applied to womenswear, these enhancements will soon extend to menswear, followed by home and kidswear categories. The strategic aims of these digital advancements are reflected in the company’s financial performance, as seen by a 5.3% rise in clothing and home sales and a significant 21% increase in adjusted operating profit, reaching £402.8 million. By the end of March 2024, Marks & Spencer’s clothing market share had grown from 9.6% to 10%, accompanied by an operating margin of 10.3%.
These developments represent Marks & Spencer’s commitment to meeting evolving customer needs and solidifying its position in the competitive retail landscape.
Marks & Spencer’s digital enhancements underscore its dedication to boosting market share and operational efficiency in the dynamic retail sector.
