Today, Marks & Spencers reported a huge loss of £201.2 million in their yearly report. I have expert commentary from financial expert James Andrews at money.co.uk that I think you’ll be interested in.
Marks & Spencer records a £201.2 million pre-tax loss for the year
James Andrews, Personal Finance Expert at money.co.uk, said:
“It’s been a testing year for the high street as Marks & Spencer follows the trend of many of its competitors, ending the year with a £201.2m loss.”
M&S has been working hard throughout the pandemic to maintain sales and revenue with much of its floorspace closed to customers. In November the retailer reported the first loss in its history largely as a result of coronavirus restrictions.
Although store closures have heavily impacted the UK retailing giant, the company had seen a positive drive in their online sales of 53.9%, which has reduced the overall loss. Over the past year the UK high street has been severely affected but the future for M&S appears bright in comparison to the likes of Debenhams and John Lewis who have taken a harder hit. The retailer seems to be bouncing back and, with the right strategy, could work to attract its competitors’ lost customers.
A key difference here is what M&S offers with its food hall and grocery options. The retailer made a smart move with its deal with Ocado; with Marks & Spencer seeing food revenue up 1.3% thanks to the partnership. This deal effectively supported them through the end of this financial year.
As high streets reopen for non-essential goods and people return to offices, the next quarter will be key in working out the shape of the post-covid retail world. Marks & Spencer will need to assess where its priorities lie to convince both in-store and online shoppers to spend their money there as demand changes and priorities shift.
The store has started to make changes already, by switching up its offering and introducing new brands to its online fashion range aimed at a wider target audience. But M&S will need to boost other merchandising within its stores – alongside its grocery, home and fashion departments – to bounce back as the economy reopens.”
I hope this is of use – If you would like any further commentary please let me know.