Analysis: Marks and Spencer gains McDonald’s customer focus

Her recruitment as managing director for clothing, home and beauty, reporting to chief executive Steve Rowe and with a seat on the retailer’s operating committee, surprised the retail industry because she brings no experience in apparel – a key M&S category which has been under pressure for years.

“Jill looks at things through the prism of the customer and what we needed to do for the customer”

Dennis Millard

The contrast between McDonald and Christos Angelides, renowned for his fashion product expertise and previously seen as a frontrunner for the role before deciding to run Reiss instead, could not be greater.

What can McDonald, who also formerly worked for the burger chain of the same name as well as Colgate-Palmolive, bring from the world of treads to threads as M&S battles to reignite its style appeal?

‘First-class customer knowledge’

McDonald’s fans, of which there are many, would perhaps point to one defining characteristic of her various roles so far – a relentless focus on customers.

She described herself as “an M&S customer and professional fan” when her appointment was unveiled, while Rowe lauded her “first-class customer knowledge”.

And the word “customers” peppered Halfords chairman Dennis Millard’s comments to Retail Week when asked about the difference McDonald had made during her 18-month stint running the bikes, car accessories and services specialist.

“Jill looks at things through the prism of the customer and what we needed to do for the customer,” he said. “We’re now much more highly engaged with customers.”

Canaccord Genuity analyst David Jeary observes: “This is an interesting appointment from an M&S perspective since Ms McDonald cannot be seen as a clothing expert.

“What she does bring is considerable experience in marketing and customer relationship management, which have become even greater areas of focus under Steve Rowe’s tenure.”

What to expect

So what did McDonald do at Halfords that may give a foretaste of her approach at M&S?

One of the strategic programmes she initiated was entitled ‘Putting customers in the driving seat’ and involved investment in “customer data and insight capabilities to maximise the lifetime customer value”.

When Halfords posted interims last September, it said it had become better able to match sales to specific customers and, as a result, to create more relevant marketing and draw upon insights gained in order to adapt the customer offer and drive sales.

Halfords also surveyed shoppers who did not make purchases when visiting the retailer, similarly allowing it to improve its offer.

As M&S battles to keep existing clothing customers satisfied, win custom back from rivals and resonate with successive generations of shoppers, similar insights could prove invaluable.

M&S’s growing Sparks membership programme is likely to prove a useful weapon in McDonald’s armoury.

While at Halfords, McDonald also made it a priority to improve the shopping experience, including through improved store design and visual merchandising, and exploiting the company’s “uniqueness” through, for instance, product innovation and exclusive lines.

At M&S, a unique retailer if ever there was one and with a heritage of innovation and quality based on exclusive ranges, the challenge will be to make those values concrete for shoppers and so prompt them to open their purses.

“You often find that former FMCG people have a longer-term horizon, so she can bring a strategic perspective and let people who are stronger on the product side concentrate on that”

Headhunter

Great product skills will be central to that and, although she lacks a fashion product background, her supporters believe her management style and the “bench strength” of her direct reports at M&S mean her inexperience in apparel should not be a problem.

Jo Jenkins, widely thought to have been the internal contender for the role McDonald has taken, has been handed increased responsibilities and promoted to become clothing and beauty director – recognition of her abilities and, observers believe, a way of keeping her on board.

Along with Jenkins, McDonald’s direct reports will be director of home Neil Harrison and the semi-independent Lindsey brothers, Mark and Neal, who recently signed a new three-year deal as sourcing directors.

One headhunter who knows McDonald said: “She’s always had a very strong reputation as a visionary person, good at planning and forward-thinking.

“You often find that former FMCG people have a longer-term horizon, so she can bring a strategic perspective and let people who are stronger on the product side concentrate on that.”

Fully restoring M&S’s fashion appeal has long proved elusive. But Rowe will hope that McDonald, who will join in the autumn, is the person who can rev up performance.