It’s no secret that M&S has got its mojo back. After more than a decade in the doldrums, its clothing and homewares are back on form and it is winning back customers – and attracting new ones too.
The division has delivered 12 consecutive quarters of growth, with sales up 5.3% in its last financial year, and it holds its highest market share in womenswear in nine years.
However, it’s not resting its laurels. The high street giant is aiming to grow its clothing and home market share by 1% and achieve an operating margin of over 10% by its 2028 financial year.
One of the ways M&S plans to hit this target is through growing and improving its online business.
Clothing and home managing director Richard Price said: “We are over two years into our programme for growth and we can really start to see the beginnings of a new M&S.”
“Online sales are growing ahead of the market and ahead of stores. It’s driven by better product and much more effective branded social marketing.”
The goal is to elevate M&S.com’s share of clothing and home sales to 50%, a jump from 22% just five years ago by integrating its digital and in-store experiences, and creating a seamless, omnichannel shopping journey.
The M&S app has become a cornerstone of this strategy, with user numbers growing to 5m and it now accounts for 44% of all online orders.
It is also looking to grow its Sparks loyalty scheme members as this gives it the ammunition to personalise every customer interaction, with tailored offers and experiences.
M&S’ approach has already begun to pay off. Online sales were up 7.8% in its last financial year.
Improving the online experience
The retailer’s recent online refresh has enhanced the user experience, with improvements including personalised homepages, faster browsing speeds, simplified navigation, and modernised visuals.
Personalisation is at the heart of these changes as it aims to tailor every customer interaction to individual preferences, from language to style recommendations.
Its new ‘Style Tips and Outfit Explorer’ app feature, allows customers to receive tailored style advice based on their preferences.
This tool has already engaged 450,000 users, generating 40 million outfit options— which is expected to drive significant additional sales.
A resurgent M&S fashion offer
A fashion offer that customers want to buy is central to this growth – and M&S is firing on all cylinders here.
The retailer promoted former Topshop fashion director Maddy Evans to director of womenswear in 2022 and since then she has made a big impact in terms of changing customer perceptions of the retailer’s womenswear department.
This time last year, Sienna Miller – who has previously starred in campaigns for the likes of Burberry, Hugo Boss, and Vogue Eyewear – fronted its campaign, showing how far its fashion offer has come.
Its new autumn winter campaign ‘Big Autumn Energy’, released today, will build on that. Starring model Lineisy Montero, the campaign showcases five hero outfits with an “elevated fashion aesthetic” including a vivid blue velvet suit and top to toe ivory look.
M&S clothing and home marketing director Anna Braithwaite says: “We want customers to think of us for all their needs. From seasonal essentials like denim, knitwear and outerwear, the building blocks of every woman’s wardrobe, to those key style pieces like the blue velvet suit – and the autumn collection delivers that, as you’ll see from the ad.”
Jumping on new selling opportunities
Initiatives like M&S Insiders, which uses the retailer’s team members as online influencers, and live shopping, which allows customers to buy products in real time through a live video stream, are helping to drive engagement and revenue.
Since its launch in 2022, live shopping has generated over £14m, attracting an average of 17,000 visitors per show.
M&S director of online and omnichannel Stephen Langford explains that the channel is proving so popular because audiences resonate with “real people” speaking candidly on their favourite products.
As the first UK retailer to partner with TikTok on creator tests, M&S is tapping into a younger audience, with 28% of TikTok revenue coming from new online customers.
Various products have gone viral on the popular app, resulting in sold-out items thanks to mass engagement.
M&S is also increasing its spend on social channels, up 79% year-on-year, reflecting a shift in marketing strategy, which Langford says proves the retailer is “moving on with the times” as it prioritises social over traditional TV marketing.
The retailer’s journey to modernise how it sells is well underway, with significant progress already made.
However, the road ahead is filled with more opportunities for M&S to pair its rich heritage and resurgent brand with new technology to make it a fashion leader in the digital age.
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