Website woes hit sales at M&S

Written By Unknown on Selasa, 08 Juli 2014 | 15.36

8 July 2014 Last updated at 09:27

Marks and Spencer has reported a big drop in online sales after its move to a new website platform hit trading.

Sales at M&S.com were down 8.1% in the 13 weeks to 28 June, with M&S chief Marc Bolland admitting the new site had "an impact on sales".

Like-for-like sales of non-food products, including clothing and homewares, fell 1.5% in the quarter.

However, the fall was offset by continued growth in M&S's food sales, which increased 1.7%.

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The new website intended to transform the 130-year-old business but has faced obstacles since its launch in February.

All six million customers registered on the old site were forced to reregister, and there have been reports of problems with site navigation.

Laura Wade-Gery, who was head of M&S's online business, was elevated just one week ago to oversee M&S's UK stores and some are tipping her to, one day, take over from chief executive Marc Bolland.

'Old tale'

Mr Bolland blamed teething problems with the website for the fall in sales. The latest results mark the 12th quarter in a row that sales at M&S's homeware and clothing division have fallen.

The retailer said sales of womenswear increased during the quarter, but like-for-like clothing sales overall were down by 0.6%.

Mr Bolland said: "We have seen a continued improvement in clothing, although as anticipated the settling in of the new M&S.com site has had an impact on sales.

"We are pleased that the womenswear business was in growth, driven by full price sales, in line with our increased focus on margin.

"Our food business had another great quarter, continuing to outperform the market, through our focus on differentiation through quality and innovation."

Neil Saunders, managing director at retail analysts Conlumino, said: "The latest update from Marks and Spencer tells an old tale: that the strategy on clothing will deliver results if only it is given more time.

"There may well be some merit in this story, but it is one that can only be spun for so long before it becomes incredulous."

Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers said: "Against a backdrop of low expectation, M&S appears to have offered some hope.

For now, M&S remains a work in progress. The group's offering continues to be honed, food sales are expanding, bolstered by the roll-out of new Simply Food stores, whilst the strength of the group's brand name and the still attractive dividend yield cannot be forgotten."

The figures were announced hours before Mr Bolland and the rest of the board are due to face shareholders at M&S's annual meeting at Wembley Stadium.


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