Shareholders of Marks & Spencer expressed discontent over the company’s recent website revamp, which led to a decline in online sales. The £150 million overhaul resulted in an 8% drop in online sales over the past three months as customers struggled to navigate the new platform. CEO Marc Bolland assured investors of a turnaround before the crucial holiday season.
During the annual shareholder meeting at Wembley stadium, investors voiced concerns about the company’s performance, questioning Bolland’s ability to deliver on promises amid declining profits and stagnant share prices. Shareholders criticized the lack of progress and urged the management to show tangible improvements rather than excuses.
Despite challenges with the revamped website, M&S reported a positive trend in its womenswear segment, showing slight growth in sales. However, other clothing departments experienced setbacks, contributing to an overall decline in general merchandise sales for the 13-week period ending in June. The website issues particularly impacted homewares sales, further exacerbating the company’s performance.
Style director Belinda Earl addressed shareholders, highlighting improvements in the clothing business, including addressing customer feedback on sleeve coverage in dresses. While some shareholders praised the changes, others criticized the outdated styles and expressed dissatisfaction with the new website’s functionality.
Approximately half of the previous website’s users have transitioned to the new platform, which emulates an upmarket shopping experience. However, many customers expressed frustration with the site’s usability, flooding M&S’s social media with complaints about navigation difficulties and unfriendly interfaces.
Finance director Alan Stewart defended the website relaunch, attributing the sales impact to a transitional period akin to relocating a supermarket aisle. Analysts noted that while womenswear and in-store performance showed improvement, the online setbacks overshadowed these gains, leaving investors concerned about M&S’s ability to manage multiple aspects of the business simultaneously.
Despite the challenges, M&S remains committed to delivering on its investment and growth plans. The company’s shares closed slightly lower following the shareholder meeting, reflecting investor apprehension about the impact of the website revamp on the overall business performance.
As M&S navigates the aftermath of its website revamp, industry experts emphasize the importance of seamless online experiences in an increasingly digital retail landscape. The incident underscores the critical role of user-friendly interfaces and efficient navigation in driving online sales and customer satisfaction, signaling a need for continuous improvement and adaptation in the competitive fashion e-commerce sector.
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