M&S expands oversees to avoid economic crisis
November 11, 2010
Marks & Spencer will launch a new expansion aimed at moving the focus of its business overseas in an attempt to shy away from its dependence on the UK economy.
The retailer said that by expanding its online sales, it would diminish its risk within the UK. Marc Bolland, M&S’ new chief executive revealed plans in his strategic review to double the group’s internet sales by 2014.
The City recently said that Mr Bolland’s review was ‘full of substance’, in spite of the major economic challenges facing the industry this year. The Dutchman also reported that M&S would do away with its Portfolio fashion label along with its electrical products in an effort to make room for the expansion plans. The retailer will also focus more on its own-brand products, diminishing its stock of non-M&S brand goods.
With its new marketing headline, ‘Only at M&S’, the chain will feature ads aimed at targeting M&S own-brands, sold exclusively at M&S. Also, the group will up the number of retail outlets it has in the UK.
Mr Bolland began in May, replacing M&S’ outgoing boss, and quickly announced that he would focus on moving expenditure up by £850m to £900m to fund the new expansion during the coming three years. He also said that over four years, M&S would move sales growth outside the country.
Although M&S has 337 outlets in more than 40 countries, it is currently seen as a majority UK retailer with exports to international franchises. Mr Bolland said he would look to expand most aggressively in China, which was recently forecasted to grow 10 per cent in its economy in the next year.
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