Last update on: 7:12 pm October 30, 2024 by fashionabc
British retailer Marks & Spencer is embracing digitalisation with the launch of its fitting rooms’ self-service checkout. With this initiative, the retailer hopes to create an effortless transaction process, which will benefit customers.
M&S will integrate self-checkout options across all 180 clothing stores. Image: marksandspencer.com
Marks & Spencer made headlines when it announced a sharp increase in its financial performance for the fiscal year 2023-24, with profit before tax soaring by 41.4 percent to £672.5m. Today, the iconic British retailer has launched a customer-centric initiative to integrate self-checkout options across all 180 of its clothing stores, aiming to streamline the shopping process. By doing so, they hope to create an effortless, enjoyable experience that encourages customers to browse and buy without hesitation. Sites where self checkouts are already in operation include Fosse Park in Leicester, one of the retailer’s flagship stores.
“It has been a good year… We have made progress on ‘hardwiring’ sustainable change – how and when we execute our strategic priorities – with progress in store rotation and supply chain,” said Stuart Machin, Chief Executive. “However, we need to move faster and be ruthlessly challenging on the areas where progress has been slower, building a more effective digital and technology infrastructure, accelerating the move to a truly personalised customer experience, and resetting priorities in International. We have a clear plan, a clear vision for the future, and there is so much opportunity ahead of us. We are at the beginning of a new M&S.”
The beginnings of a new M&S is evident in the introduction of the self-self-scanning technology. According to The Telegraph, the retailer has already introduced the self scanning technology in twenty-eight recently refurbished locations and plans to complete the roll out to a hundred stores by 2028. The initiative will then be introduced in the remainder of shops. The company’s approach aligns with a broader industry shift toward technology-driven convenience, reflecting a clear response to the modern shopper’s expectations of speed and ease.
Self scanners are currently being added to just one changing room area but more could be added as per customer demand. M&S’s self-checkouts are poised to reshape the in-store experience, making quick, fuss-free transactions the new norm and allowing customers to enjoy a more personalised shopping journey.
As M&S continues its transformation, there has been significant investment in creating more personalised customer experiences. “We know that customers who shop with M&S through both the online and store channels spend significantly more than single channel customers, so we want to make sure they have the best possible experience both in our stores and online,” per a company report.
“Behind every successful turnaround is a renewal of culture, talent and leadership. The M&S culture is transitioning from slow, hierarchical and inward looking, to one of equal respect, straight talking, closer to stores and closer to customers,” said Chairman Archie Norman. “The Board’s role is to help orchestrate and reinforce the “reshaping programme”. That means having a challenging engaged Board, close to the business and adding value to the strategy as well as providing robust governance and awareness of risk. Our Board is not for the faint hearted, but our work is important and fulfilling.”
Marks & Spencer: Reshaping for growth
Marks & Spencer’s “Reshaping for Growth” strategy represents a transformative shift aimed at revitalising its business model and adapting to a rapidly evolving retail landscape. Through this approach, Marks & Spencer has prioritised the modernisation of its operations and a customer-centric retail strategy to enhance its competitive edge and drive sustainable growth.
“Two years into our plan to Reshape for Growth we can see the beginnings of a new M&S. Food and Clothing & Home grew volume and value share ahead of the market and sales increased across stores and online. Both businesses have now delivered 12 consecutive quarters of sales growth and this trading momentum gives us wind in our sails, and confidence that our plan is working. We are becoming more relevant, to more people, more of the time,” explains Stuart Machin, Chief Executive Officer, M&S.
A key element of this strategy involves restructuring its store portfolio, with M&S planning to close underperforming stores and open more in high-performing locations, thus re-aligning its physical presence to better reflect shopping trends. For instance, the company has strategically invested in larger store spaces with a wider product selection in high-traffic areas to attract a broader customer base and improve in-store experiences.
Marks & Spencer has prioritised modern operations and a customer-centric retail strategy to drive sustainable growth. Image: marksandspencer.com
In addition to reshaping its physical stores, M&S has placed a strong emphasis on strengthening its online operations and enhancing digital integration across its services. This shift reflects a commitment to omni-channel retailing, wherein the company aims to offer a seamless shopping experience regardless of whether customers are online or in-store.
To this end, M&S has partnered with Ocado, a UK-based online grocery delivery service, allowing the retailer to expand its grocery segment online. This partnership enables M&S to tap into a wider audience while responding to the rising demand for convenient home delivery options. The company has also implemented advanced digital technologies, such as data-driven inventory management, to improve product availability and responsiveness, ultimately leading to a more efficient and customer-focused service.
Further supporting the “Reshaping for Growth” strategy, M&S has focused on enhancing its product quality and brand perception to regain customer loyalty and market share. The company has made significant strides in revitalising its clothing lines, particularly by revamping its popular core ranges to appeal to modern consumers while maintaining high standards in fabric and design. M&S’s increased investment in sustainable practices has also reinforced this strategy, with initiatives aimed at reducing plastic use and promoting responsible sourcing. For example, the “Plan A” sustainability program underscores M&S’s commitment to environmental and ethical practices, which not only aligns with customer values but also strengthens the brand’s reputation.
Collectively, these initiatives illustrate M&S’s holistic approach to reshaping its operations and product offerings to build a more agile and resilient business.
Marks & Spencer: Market share and celebrity endorsements
Marks and Spencer is one of the leading department stores and grocery retailers based in the United Kingdom. Per company records: the Group continues to experience strong financial and strategic progress in 2023-24 as M&S continues to “Reshape for Growth.”
The British retailer continues its robust, upward growth trajectory. As per the company records, “In 2023–24, Clothing and Home sales grew 5.3 percent with LFL sales up 5.2 percent. As a result of improved gross margin supported by full price sales growth and the benefits of the structural cost reduction programme, adjusted operating profit increased to £402.8m (10.3 percent margin) from £323.8m (8.7 percent margin) last year. Sales in heartland categories of women’s and menswear outperformed, due to improved product style, quality, and value.”
The retail chain has always been supported by the royal family. The Duchess of Sussex sparked a surge in demand for M&S when she wore a black batwing jumper in January 2018, reportedly leading to a sell-out on the retailer’s website. However, it was the Duchess of Cambridge who reignited a shopping spree at the British brand in March 2020, captivating royal fans with her elegant pink Marks & Spencer trouser suit.
Marks & Spencer: Brand history
British brand Marks and Spencer goes back to 1884 when immigrant Michael Marks migrated to England and opened Penny Bazaar in Leeds. Building it on a simple idea, using the slogan “Don’t ask the price, it’s a ’Penny”, Marks did brisk business and acquired a permanent stall in the Leeds covered market. Shortly, he invited cashier Thomas Spencer to be his partner. In 1903, the duo opened their first store in Leeds and the business we all know today began to take shape.
In 1903 Marks & Spencer Ltd was registered as a firm with a capital of 30,000 £1 shares, which were split equally between the two founders. Marks and Spencer earned a stellar reputation in the early twentieth century with a policy of selling just British-made goods. It entered into collaborations with British manufacturers and sold both clothes and food under the brand St Michael introduced in 1928. The retail chain emphasised on quality and had a reputation of fair value for money.
Following the deaths of Tom Spencer in 1905 and Michael Marks in 1907 a lengthy legal battle between Simon Marks and William Chapman began, ending with Simon becoming Chairman in 1916 at the age of 28. Simon was to lead the company for 56 years. After considerable changes in the executive board, Archie Norman was appointed Chairman in 2017. In 2022, Stuart Machin was appointed Chief Executive and helms the retail chain alongside Co-Chief Executive Katie Bickerstaffe.
There are several high points in the retailer’s history. In 1988, the company acquired Brooks Brothers and Kings Super Markets; in 2007, it opened the world’s largest M&S shop outside the UK at Dubai Festival City; and in 2021, the British retailer purchased Jaeger from its administrators. embracing the shift towards digitalisation, the British retailer brought all digital payment solutions under one brand banner: Scan & Shop with Sparks.
Per BoF, ‘They have focused on transforming the culture in M&S, improving the quality and value of its clothing and food products, while reshaping its store estate and investing in technology and e-commerce, including a venture with online supermarket Ocado.’
Jasmeen Dugal is Associate Editor at FashionABC, contributing her insights on fashion, technology, and sustainability. She brings with herself more than two decades of editorial experience, working for national newspapers and luxury magazines in India.
Jasmeen Dugal has worked with exchange4media as a senior writer contributing articles on the country’s advertising and marketing movements, and then with Condenast India as Net Editor where she helmed Vogue India’s official website in terms of design, layout and daily content. Besides this, she is also an entrepreneur running her own luxury portal, Explosivefashion, which highlights the latest in luxury fashion and hospitality.
