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| Marks & Spencer blames website for sales decline | |
| (about 3 hours later) | |
| Marks & Spencer has blamed problems with its website for its latest decline in sales, intensifying shareholder on chief executive Marc Bolland. | Marks & Spencer has blamed problems with its website for its latest decline in sales, intensifying shareholder on chief executive Marc Bolland. |
| The high street bell-wether — overtaken by Next in the profit stakes this year — chalked up a 12th consecutive sales fall in its prized general merchandise division, which includes its all-important womenswear offering. | The high street bell-wether — overtaken by Next in the profit stakes this year — chalked up a 12th consecutive sales fall in its prized general merchandise division, which includes its all-important womenswear offering. |
| Bolland blamed the latest decline on the stuttering launch of the retailer’s website, which analysts labelled a “fiasco”. The share price fell 1 per cent or 5.1p to 428.1p. | Bolland blamed the latest decline on the stuttering launch of the retailer’s website, which analysts labelled a “fiasco”. The share price fell 1 per cent or 5.1p to 428.1p. |
| Chairman Robert Swannell was set to give his full backing to the Dutch boss at the Wembley meeting, but serious problems with the £150 million new website helped push like-for-like clothing sales down 0.6 per cent, and overall general merchandising down a worse-than-expected 1.5 per cent. | Chairman Robert Swannell was set to give his full backing to the Dutch boss at the Wembley meeting, but serious problems with the £150 million new website helped push like-for-like clothing sales down 0.6 per cent, and overall general merchandising down a worse-than-expected 1.5 per cent. |
| The latest decline underlines the challenge faced by M&S’s new UK retail chief Laura Wade-Gery, who has given increased responsibilities last week. | The latest decline underlines the challenge faced by M&S’s new UK retail chief Laura Wade-Gery, who has given increased responsibilities last week. |
| Bolland insisted the 8.1 per cent fall in web sales was due to a “settling in” period but admitted turnover on the site would not recover until Christmas. | Bolland insisted the 8.1 per cent fall in web sales was due to a “settling in” period but admitted turnover on the site would not recover until Christmas. |
| He said: “It is not an issue with the website. The conversion [turning online visits into sales] was expected to be lower because we brought a lot more [editorial] content, but it is now a lot more inspiring. It’s a journey and I’m pleased with the journey.” | He said: “It is not an issue with the website. The conversion [turning online visits into sales] was expected to be lower because we brought a lot more [editorial] content, but it is now a lot more inspiring. It’s a journey and I’m pleased with the journey.” |
| But analysts were scathing. Neil Saunders at Conlumino said: “After the significant investments made, a result of very negative sales over the past three months is highly disappointing, especially since this part of the market is witnessing growth in double digits.” | But analysts were scathing. Neil Saunders at Conlumino said: “After the significant investments made, a result of very negative sales over the past three months is highly disappointing, especially since this part of the market is witnessing growth in double digits.” |
| And Clive Black, retail analyst at Shore Capital, said: “The dot.com fiasco — and that is what it looks like, noting as we do many more complaints over praises for the current proposition — leaves a bitter taste for investors, to our minds.” | And Clive Black, retail analyst at Shore Capital, said: “The dot.com fiasco — and that is what it looks like, noting as we do many more complaints over praises for the current proposition — leaves a bitter taste for investors, to our minds.” |
| M&S has struggled with encouraging customers to re-register with the new website. Bolland said 3.2 million of the six million who had previously used the old site had moved across. | M&S has struggled with encouraging customers to re-register with the new website. Bolland said 3.2 million of the six million who had previously used the old site had moved across. |
| He was also unable to say when general merchandising or womenswear sales would return to positive territory. | He was also unable to say when general merchandising or womenswear sales would return to positive territory. |
| But Bolland also revealed that despite a fall in clothing sales, M&S was selling more full-priced items and was weaning itself off high levels of promotions. | But Bolland also revealed that despite a fall in clothing sales, M&S was selling more full-priced items and was weaning itself off high levels of promotions. |
| At the food division, sales continued to impress, up 1.7 per cent, helping total group sales rise 2.3 per cent — and a sign that shoppers are not being enticed away from its food halls to discounters Aldi and Lidl, unlike its supermarket rivals. | At the food division, sales continued to impress, up 1.7 per cent, helping total group sales rise 2.3 per cent — and a sign that shoppers are not being enticed away from its food halls to discounters Aldi and Lidl, unlike its supermarket rivals. |