Marks & Spencer has outlined its strategic enhancements to its digital operations, aiming to bolster its clothing and home market share.
- The retailer aims to increase its online sales proportion to 50% by 2028, currently at 32%, up from 22% five years ago.
- Recent improvements include faster page loading times and the use of AI in product descriptions, improving customer experience.
- The Sparks app sees increased engagement, with 44% of online sales and 5 million users participating in personalised quizzes.
- M&S’s digital sales and strategic investments have driven a 5.3% rise in clothing and home sales, with adjusted profits rising by 21%.
In an ambitious move, Marks & Spencer has launched significant upgrades to its digital platforms, part of a broader strategy to expand its market share in the clothing and home sectors. The company’s goal is to have e-commerce account for half of these sales by 2028, a substantial increase from the current 32%, which itself has increased markedly from 22% over the past five years.
As part of these enhancements, M&S has improved its website’s loading speed by half a second, a critical adjustment that enhances user experience. Furthermore, 80% of product descriptions are now generated by advanced AI, which aids in creating engaging and accurate content for consumers. Notably, the number of links presented to users has been reduced by 40%, allowing for a more streamlined and intuitive navigation experience.
The Sparks app has emerged as a vital component of M&S’s digital strategy, now accounting for 44% of online sales. The app boasts 5 million users, with 450,000 participating in quizzes designed to refine the Style Tips tool through data on body shape, size, and style preferences. This tool then curates outfits tailored to individual consumer profiles.
Digital engagement has also been a focal point, with two-thirds of new customers arriving through online channels and a 79% increase in spending on social platforms, surpassing traditional TV advertising expenditures. Live shopping, introduced in 2022, has held over 300 shows, drawing an average of 17,000 visitors per show, illustrating the effectiveness of these interactive sessions.
These digital initiatives have already proven financially rewarding, as evidenced by a 5.3% year-on-year increase in sales within M&S’s clothing and home division for the year ending March 2024. Adjusted operating profits for these categories rose by 21%, reaching £402.8 million, while the clothing market share edged up from 9.6% to 10%, with an operating margin of 10.3%.
Through strategic investments in digital technology, Marks & Spencer strengthens its market position and enhances customer engagement.
