Marks & Spencer's Digital Ambition: Streamlining Supply Chains for Fashion's Future

Marks & Spencer is overhauling its supply chain strategy to double online non-food sales to nearly 3 billion pounds. New fashion director John Lyttle emphasizes long-term supplier partnerships and investment in automation to bolster capability while navigating challenges like cybersecurity threats and global trade disruptions.

Marks & Spencer is undertaking a significant overhaul of its supply chain, aiming to double online non-food sales to approximately 3 billion pounds. This transformation is driven by John Lyttle, the newly appointed managing director of fashion, home, and beauty (FH&B), who joined in March. Despite a recent cyberattack that significantly impacted their operations, Marks & Spencer has managed to reestablish its market presence, with FH&B sales up by 9% over three years and a market share increase to 10.5% for 2024/25. Lyttle now plans to position M&S as a robust omnichannel retailer to meet consumer demands more efficiently.

Lyttle explained that M&S intends to streamline its supply chain processes from manufacturing to consumer delivery, tackling costs and complexities heightened by recent global challenges such as the pandemic and geopolitical tensions. By forging long-term partnerships with suppliers across key sourcing countries like China and India, M&S aims to mitigate supply risks and unlock further margin potential. Significant progress has been made through supplier consolidation, and the retailer is committed to sustained improvements in scale and cost efficiency.

To enhance their supply chain, M&S plans a 120 million pound investment in automation over the next three years, coupled with a broader capital investment in technology and logistics infrastructure. Changes include enhancing warehouse capabilities with robotic technologies and extending delivery cut-off times to meet customer expectations. Moreover, a transformation in planning and merchandising processes is underway to support this expansion without reducing workforce numbers. Lessons learned from previous cyber challenges are being integrated into M&S's long-term strategies for resilience and growth.

(With inputs from agencies.)