Steve Rowe is pressing on with his plans to turn Marks and Spencer’s clothing division around with the recruitment of Jill McDonald. Here we look at the challenges she faces in light of falling sales since 2010/11.

While M&S still remains a market leader in clothing, it is undeniable that its food division has pulled it through the last six years, representing over half of M&S’ group revenue in 2016/17 at £5.6bn.

Perhaps new managing director of clothing, home and beauty Jill McDonald could draw upon lessons from the retailer’s better-performing division after she joins later this year.

Despite M&S food representing a lower volume of shoppers than its general merchandise arm, food generated 47% more revenue than clothing and home in 2016/17, demonstrating on average a higher volume of spend on food per customer over the course of 12 months.

M&s infographic

M&s infographic

While the shopping habits of food customers evidently differ to those of a clothing shopper, conducting more frequent purchases with lower average spends, M&S’ food division clearly appeals to a large customer base, and it’s important for the business to not only understand why but consider how this can be translated into its failing general merchandise division.

What its food division has done, which clothing has failed to do, is appreciate the newness, quality and price that its customer wants and has repeatedly created ranges to satisfy this.

M&S’ food is differentiated from rivals’ through its unique and innovative ranges which are at the heart of its appeal and that enables it to justify higher retail prices – putting it in a firm position for its online trial later this year.

For some customers, it would be reasonable to suggest that shopping at M&S food is almost considered a treat, providing something different, new and special. Whether that’s its Mediterranean mezze selection for a picnic in the park on a summer’s day or a ‘dine in for two’ on a Saturday night, its food range provides a certain ‘spark’ that is clothing division has lost.

When comparing the two divisions, the simplicity and romance of its marketing for its food range speaks volumes.

There’s no need here for unnecessary spend and focus on mismatched celebrity collaborations, just as there isn’t for its clothing division.

Instead, it is focused on demonstrating the sheer quality of the range, its unmistakable calibre, and the feeling which drives its customers to spend that little bit more, and a bit more often.

If there’s only one lesson for McDonald to take away, it’s that its core market aged 50 and over isn’t driven by celebrities, but by quality and an element of opulence.

If the retailer can demonstrate this through a wobbly jelly in a television advert, then I’m sure it can through a pleated skirt too.

  • Rebecca Marks is senior analyst on Retail Week Prospect, a live intelligence platform offering insight and analysis on the UK’s retailers.
  • Originally published May 5, 2017