Mark Bolland to boost M&S online sales

By This Is Money
Updated: 15:01 EDT, 6 November 2010

New boss Marc Bolland will lay out his blueprint for Marks & Spencer in his first major presentation to the City on Tuesday.

Bolland: Will discuss selling food online

A central pillar will be his plan to boost online sales by adding more fashion and furniture ranges and promoting the store's site abroad.

Bolland has told insiders he wants to emulate the success of rival Next, whose £900m Directory sales make up more than a quarter of total sales.

M&S's online sales are half that, accounting for ten% of the £4bn general merchandise sales, which do not include food.

Analyst Philip Dorgan at stockbroker Altium Securities said Bolland's new focus could push online sales as high as £1bn within four years.

Bolland is also expected to discuss opportunities to sell food online, to increase the number of overseas stores and to cut down on clothing brands to avoid duplication.

Tuesday will also be the last major presentation attended by outgoing chairman Sir Stuart Rose. The rise in profits of about 17% to £350m in the half year may be seen as vindication of his strategy.

Rose was parachuted into the boardroom in May 2004 to repel a £9bn takeover approach by billionaire retailer Sir Philip Green.

Profits in 2008 reached almost £1bn, the highest in a decade. But the past two years threaten to overshadow Rose's efforts.

In July 2008, rebel shareholders forced him to defend his plan to combine the roles of chief executive and chairman, which is against best boardroom practice. Meanwhile, potential successors have left under a cloud while profits declined.

Analyst Tony Shiret at Credit Suisse bank said: 'He's a talented guy who took on a tough job, but he made the classic mistake of trying to chase short-term growth rather than sorting out the infrastructure. That job still needs to be done.'

Analyst Nick Bubb at stockbroker Arden Partners said: 'He was like the Grand Old Duke of York - he turned the business round, then it all came back down again.

'I don't think Rose timed his departure very well. He could easily have left two years ago on a high.'

Freddie George, analyst at stockbroker Seymour Pierce, said: 'You are always going to see ups and downs when you are so heavily reliant on fashion. At the moment they have got it right and things are on the up but fashion is a difficult thing to get right all the time.'