Marks and Spencer 2007 Annual Report Download - page 27

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The explosion of internet shopping provides another big
opportunity for us.
Our customers already like shopping with us on the net. In
2006/07, online sales grew by more than 60%, well ahead
of the market, albeit from a fairly low base, reaching over
£100m for the first time. This was driven by over 55 million
visits (last year 30 million).
If you consider that we have an 11.1% share of UK clothing
sales, but just 4.2% of online clothing sales, it’s clear that
there’s a lot more we can go for.
We have set a target to increase online sales to £500m in five
years. To reflect the size of the opportunity, e-commerce is now
a separate business unit reporting to me.
In March 2007, we launched our new website, developed with
Amazon, which has the widest selections of online clothing in
the UK – over 15,000 items – as well as 10,000 homeware and
technology products, flowers, wines and exclusive online
ranges, including jewellery.
As well as looking fresh and modern, the website includes a
range of new features, including a sophisticated, fast-search
facility which lets you search by size, colour, style and price,
or choose from over 50 departments.
The photography is sharper, you can look at the item in all
available colours, and a zoom function means you can home
in on stitching and fabric detail.
The site also offers tips and recommendations tailored to
customers’ shopping preferences.
We are also improving service levels, with standard delivery
times shortened from seven days to three, in addition to our
free standard delivery on all orders over £30. We also offer next
day and nominated day deliveries for a small premium.
Later in the year, web, phone and in-store ordering will be
linked together for the first time, providing more delivery
choices, something customers have said is important to them,
including collecting online orders from a store of your choice.
In line with Plan A, we are playing our part in making our
operations more sustainable, with over 90% of our online delivery
packaging now made from recycled, recyclable materials.
I believe we are now set up to offer one of the best e-commerce
sites in the UK for clothing, homeware, gifts and selected food
products with potential for further development.
THE ONLINE OPPORTUNITY
Online shopping is growing at a rapid
rate in the UK. This is supported by
the spread of broadband technology.
Industry forecasts for the UK online
clothing and footwear market predict
an increase in sales this year of 42%
to £3.5bn (source IMRG).
www.marksandspencer.com/annualreport2007 MARKS AND SPENCER GROUP PLC 25
£500m
We intend to grow our online sales
from just over £100m in 2006/07 to
£500m within five years.
online
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