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M&S chief Bolland says results 'not good enough' | |
(about 3 hours later) | |
Marks and Spencer's sales performance in clothing and homewares is "not good enough", its chief executive has said. | |
Marc Bolland's comments came as he addressed shareholders at the retailer's Annual General Meeting. | |
Some shareholders expressed frustration at the time it was taking to revive the High Street giant. | |
Earlier on Tuesday, M&S reported its 12th consecutive drop in quarterly sales of general merchandise, with trading hit by problems at its website. | |
Mr Bolland admitted that issues with M&S's revamped website had had "an impact on sales", with online purchases down 8.1% in the latest quarter. | |
At the AGM at London's Wembley Stadium complex, one shareholder said: "This must be the slowest turnaround of a ship in history." | |
Another said M&S had forgotten how to produce goods "that appeal to the public". | |
Website worry | |
The new website intended to transform the 130-year-old business but has faced obstacles since its launch in February. | The new website intended to transform the 130-year-old business but has faced obstacles since its launch in February. |
All six million customers registered on the old site were forced to reregister, and there have been reports of problems with site navigation. | All six million customers registered on the old site were forced to reregister, and there have been reports of problems with site navigation. |
Last week, Laura Wade-Gery, who was head of M&S's online business, was promoted to oversee M&S's UK stores and some are tipping her to, one day, take over from Mr Bolland. | |
Problems with online sales contributed to a 1.5% fall in like-for-like sales of general merchandise in the 13 weeks to 28 June | |
However, the fall was offset by continued growth in M&S's food sales, which increased 1.7%. | |
Overall, UK like-for-like sales were up 0.3%. | |
'Old tale' | 'Old tale' |
The retailer said sales of womenswear increased during the quarter, but like-for-like clothing sales overall were down by 0.6%. | The retailer said sales of womenswear increased during the quarter, but like-for-like clothing sales overall were down by 0.6%. |
Mr Bolland said: "We have seen a continued improvement in clothing, although as anticipated the settling in of the new M&S.com site has had an impact on sales. | Mr Bolland said: "We have seen a continued improvement in clothing, although as anticipated the settling in of the new M&S.com site has had an impact on sales. |
"We are pleased that the womenswear business was in growth, driven by full price sales, in line with our increased focus on margin. | "We are pleased that the womenswear business was in growth, driven by full price sales, in line with our increased focus on margin. |
"Our food business had another great quarter, continuing to outperform the market, through our focus on differentiation through quality and innovation." | "Our food business had another great quarter, continuing to outperform the market, through our focus on differentiation through quality and innovation." |
Neil Saunders, managing director at retail analysts Conlumino, said: "The latest update from Marks and Spencer tells an old tale: that the strategy on clothing will deliver results if only it is given more time. | Neil Saunders, managing director at retail analysts Conlumino, said: "The latest update from Marks and Spencer tells an old tale: that the strategy on clothing will deliver results if only it is given more time. |
"There may well be some merit in this story, but it is one that can only be spun for so long before it becomes incredulous." | "There may well be some merit in this story, but it is one that can only be spun for so long before it becomes incredulous." |
Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers said: "Against a backdrop of low expectation, M&S appears to have offered some hope. | Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers said: "Against a backdrop of low expectation, M&S appears to have offered some hope. |
"For now, M&S remains a work in progress. The group's offering continues to be honed, food sales are expanding, bolstered by the roll-out of new Simply Food stores, whilst the strength of the group's brand name and the still attractive dividend yield cannot be forgotten." | "For now, M&S remains a work in progress. The group's offering continues to be honed, food sales are expanding, bolstered by the roll-out of new Simply Food stores, whilst the strength of the group's brand name and the still attractive dividend yield cannot be forgotten." |
'Over-complicated interface' | |
Many readers have been in touch to comment on their experience with the revamped M&S.com. | Many readers have been in touch to comment on their experience with the revamped M&S.com. |
Laura Ann McCarthy said: "I have tried using the new website and I have found it incredibly difficult and frustrating to use. I regularly shopped online at M&S before but I have not bought anything since the launch of the new website." | Laura Ann McCarthy said: "I have tried using the new website and I have found it incredibly difficult and frustrating to use. I regularly shopped online at M&S before but I have not bought anything since the launch of the new website." |
Ronbo from Lancashire emailed: "The old M&S website may not have been flashy but it was a masterpiece of clarity. In seeking to emulate retailers like Next, M&S have produced an over-complicated user interface that spends most of its time "selling at" the consumer rather than responding to their requests". | |
Jerry Sanders, an independent internet analyst, said that successful websites should not require too many steps before purchasing. He recommends simple search bars to find an item, followed by a "buy it now" button. | Jerry Sanders, an independent internet analyst, said that successful websites should not require too many steps before purchasing. He recommends simple search bars to find an item, followed by a "buy it now" button. |
He said: "Three pre-purchase interactions are just about tolerable - four or more and the sale will likely be lost to a competitor's site. | |
"As the spending power of the social media generation becomes more and more influential old-style websites requiring several layers of navigation are running into problems." | "As the spending power of the social media generation becomes more and more influential old-style websites requiring several layers of navigation are running into problems." |
Daniel Booth, editor of Computeractive said: "M&S can't expect the High Street loyalty they enjoy to automatically translate online, and they risk losing the next generation of web-savvy shoppers if their website is substandard". | |