Comment: Marks & Spencer stores must reflect its fashion-led product

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Marks & Spencer’s results show that Bolland’s strategy for turnaround is slowly taking hold, but does the retailer need to take more risks?

I find this morning’s M&S results frustrating. In clothing, product quality has been enhanced, fashionability across ranges is far more evident and reduced markdown has allowed it to better justify price points and its market positioning, yet headline like-for-likes do not reflect this.

However, dig a little deeper and we start to see the turning point.

With general merchandise sales of £1.9bn for the first half, the scale of the operation in returning this division back to positive sales growth is momentous and Bolland’s gradual approach has so far been tolerated.

Total clothing & footwear sales fell 1.6%, with like-for-likes dropping a steeper 2.2%, underperforming its major rivals – despite all suffering from a mild autumn.

However, in the five months to the end of August, womenswear sales were up 1.3% highlighting that its improvement to product in terms of fashionability and quality has started to be noticed by increasingly demanding shoppers – and that the weather has negatively impacted sales.

Better incorporation and marketing of transeasonal product and supply chain flexibility will be essential going forward.

The availability of stand-out and trend-focused pieces has improved, though size ratios across stores still tend to be skewed towards a larger customer, leaving some shoppers – often younger consumers which are new to the retailer – frustrated, impacting their willingness to return in the future.

If 30-somethings continue to be a target market for M&S, as the updated product reflects, size offer and availability must be addressed more quickly – requiring the retailer to take greater risks and have confidence in its buyers.

Building its level of direct sourcing will help to achieve this, with repeat buys and fast replenishment being more controllable.

The translation of its more desirable collections in physical stores continues to be lost across much of its store estate.

In the first half, stores have been less littered with promotional activity, making them easier to shop and helping to defend prices from discount-led and value rivals, but shop fits do not yet convey an image of fashion and quality, falling behind Next, John Lewis and Zara.

With 70 stores to be given the same facelift as its White City store, and the rest of the estate to receive smaller updates, this will help to change consumer perception of the brand.

M&S has committed to keeping space allocated to general merchandise flat for three years, so this lack of capex in new space must be transferred to improving existing stores.

Bolland committed to returning M&S’s general merchandise business back to growth, and while he is taking a long time to deliver tangible results the investment made across product, stores and online will deliver.

Stores must reflect its more fashion-led product, marketing campaigns and online visuals to drive footfall and ensure all shoppers are in tune with the new and improving M&S.