All very predictable from M&S this morning. This was once a wholly exceptional retailer – these days it is entirely ordinary. Shutting stores is fine, as far it goes. Virtually everyone has too many stores so adding to the planned closures is probably sensible. However, it misses the point.
So much of retail is run on the “build it and they will come” principal. The fact that they (aka customers) have been progressively not turning up has so far failed to change the majority of retail mindsets. So, the reaction is to lower costs. And that is top of Marks’ agenda. They believe that if they can lower prices, “they” will buy more. They wont.
The costs of a business must be defined by its offer, not the other way round. How many stores Marks has, how big and where they are located needs to be governed by the nature of what it sells, and its target market. This simply does not work in reverse, especially in the zero growth market we have today and for the foreseeable future. The pursuit of lower prices has progressively diminished styling and product quality, eroding relevance and brand values. Evaporating loyalty is the growing price being paid for continuing down this cul-de-sac.
Huge changes among the senior team leaves the business with thin experience and a diluted culture. Where are the M&S cultural values that made it special? Words are cheap but the daily body language of the company’s stores is discouraging. Billions of pounds in lost sales weighs heavily on the big 4 grocers, chasing price instead of defending their own added value in the market. M&S is doing exactly the same in clothing, chasing Primark and others lower. Very few retailers can afford to keep disappointing their customers, and Marks’ wrong direction is consistently doing just that.
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