Marks & Spencer Overhauls Supply Chain for Online Growth

M&S Online Sales Ambitions

• 🎯 Marks & Spencer aims to double annual online non-food sales to nearly $4 billion.
• 💡 Online sales are identified as a key part of future growth by department boss John Little.
• 📈 The goal is to increase online's share of total fashion, home, and beauty sales from approximately 34% to 50%.

Enhancing the Customer Journey

• 🛒 Omni-channel shopping is critical, with two-thirds of customers using click and collect and over 80% returning items in-store.
• 🛍️ A seamless journey for customers is a top priority for the retailer's future strategy.

Supply Chain Investment and Improvements

• 🛠️ M&S is planning a $157 million investment over three years in automation to overhaul its supply chain.
• 📦 Key benefits for customers will include improved product availability (finding styles and sizes) and next-day delivery options (both click and collect and direct to home).
• ⏰ The current cutoff time for next-day deliveries is 7:00 PM, with potential for innovation to extend this further.

Resilience and Recovery

• 💻 The retailer has regained its footing after a cyber attack in April that disrupted online clothing orders for seven weeks and cost an estimated $393 million in lost profit.
• 📈 Despite the setback, non-food sales have seen growth of over 9% in three years.

Broader Supply Chain Context

• 🌍 Simplifying and cutting supply chain costs is a priority for many companies due to factors like COVID-19, the war in Ukraine, Red Sea shipping disruptions, and global trade upheavals.