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Marks and Spencer Group plc Annual report and financial statements 2013 26Strategic review
“ We’re making it
easier for customers
to shop the way they
want with M&S.”
Laura Wade-Gery
Executive Director,
Multi-channel E-commerce
Multi-channel
As explained on page 24, we made more
of our products available to our
customers through the introduction of
new Browse and Order points to our
stores and by equipping more store
employees with iPads. Large digital
screens play catwalk videos and our new
Home and Beauty departments use
technology to inspire customers and
provide tailored advice and guidance.
In May 2012 we relaunched our mobile-
optimised site to deliver an even richer
browsing and shopping experience. We
launched our first ever transactional
iPhone app in July 2012 and created a
new M&S Home iPad app, which brings
our home catalogue to life in an easy-to-
shop format. As a result, mobile and
tablet sales increased by almost 200%
and now account for 18% of M&S.com
sales.
As explained on page 16, we are tailoring
our marketing campaigns to reflect
customers’ increasing use of mobile and
the completed roll-out of free WiFi has
made it even easier for them to browse
and buy from their devices in our stores.
Building a world class infrastructure
To fulfil our multi-channel ambitions we
need to be an agile business, with the
right infrastructure in place and the ability
to innovate with pace. This year we
made real progress and in February
2013, we launched a new Digital Lab
function to help us move faster in
developing first-to-market technologies
for e-commerce, in-store technology and
digital marketing. Our team of specialists
test emerging retail technologies, build
prototypes and develop concepts for
implementation on a larger scale across
M&S.
Our new 900,000 sq ft e-commerce
distribution centre at Castle Donington
opened in May 2013. Located at the
heart of the UK’s road and rail network,
the fully automated site will help us to
better serve customers across the
country, with further improvements
expected to delivery times and product
availability in the year ahead.
During the year we began to introduce
elements of our new multi-channel
platform. The full new site will launch in
Spring 2014, showcasing the best of
M&S via a fashion-forward online
environment and offering a crisp,
easy-to-shop experience.
This year we saw a good M&S.com
performance, with sales up 16.6%
despite tough comparatives. Over the
last 12 months we have made the
M&S shopping experience easier and
more convenient – as well as more
inspiring – for our customers, however
they choose to shop with us. We are
applying multi-channel thinking right
across the business and are building
a world class infrastructure to help us
fulfil our customers’ expectations.
Throughout 2012/13 more customers
opted for the convenience of online
shopping. We now have over 3.6 million
weekly visitors to our UK site, thanks to a
combination of improved navigation, more
style advice and greater choice, including
40% more online product exclusives.
Our online business now accounts for a
greater proportion of our General
Merchandise sales at 13% compared to
10.9% last year. Some 40% of all dresses
were sold online and one in four M&S
suits was sold through our website.
Now available in 476 stores, our Shop
Your Way service allows customers to
order and collect their shopping in the
way that suits them best. This year we
improved the offer with the launch of free
next day delivery to our stores. The
service grew in popularity, with over 54%
of M&S.com orders being placed or
collected in store.
New ways to shop
Expanding M&S.com not only gives us
more reach, but drives more spend from
our customers. By providing new ways to
access products we attract slightly
younger customers and extract more
value from our stores.
Revenue
£651.8m
16.6%
Weekly site visitors
3.6m
18%
Multi-channel Home Hub
Our new Home Hub maximises
our selling space, with touch
and feel sample displays to
showcase items such as
towels, fabrics and upholstery.
Customers can then browse
and order from the full range
via iPads and large format
touch screen points. The
format also features interactive
buying guides, such as ‘Your
Perfect Night’s Sleep’, which
helps select the ideal duvet.
MULTI-CHANNEL HIGHLIGHTS
INNO