Non-food purchases in UK stores are down, and in addition, competition from store-based and online retailers is putting pressure on the entire industry.
Now M&S is closing some stores, reducing the focus on apparel products (which typically have good profit margins) in favour of food products (not always as profitable, but purchased much more frequently).
M&S recognises that consumer behaviour is changing: 'Picking up food for now or tonight rather than doing one big shop or browsing and shopping online and collecting in store are great examples of this, and we are committed to adapting our business so that we stay in tune with our customers,' says chief executive Steve Rowe. At the same time, M&S is opening new stores in areas that hold market promise. Otherwise, the retailer may have difficulty achieving growth.
Debenhams is also closing stores amidst its ongoing turnaround effort. The retailer has a plan for targeting younger shoppers, with three main pillars: destination, digital,and different.
The retailer plans a sharper focus on in-store 'experiences' like cafes and more digital/social/mobile purchasing: 'We will be a destination for social shopping, with mobile the unifying platform for interacting with our customers', explains chief executive Sergio Bucher.
Adapting is a challenge, yet with consumer behaviour evolving, Debenhams and M&S must find distinctive and appropriate strategies for meeting needs in a profitable way.
