M&S Direct is central to our commitment to becoming a multi-channel retailer. It goes beyond merely selling our products online; encompassing our Home catalogue, flower and wine delivery, Food to Order party catering service and lunchtogo, which delivers lunchtime platters. It facilitates a dialogue with customers through initiatives such as customer reviews and feedback, and increasingly integrates our stores with our website. For example customers can now redeem gift cards online, or subscribe to SMS alerts to find out about offers and promotions.
Sales from our website were up 34%, outperforming the online market. Our online clothing market share increased to 5.3% from 4.5% (Fashiontrak). The traffic to the site grew by 36% over the year.
During this year we continued to extend and innovate our online offer, launching international delivery, a Wine Club, and 3,000 premium white goods. We’ve also focused on providing an engaging shopping experience through initiatives such as Your M&S TV, hosting nine channels of interviews and catwalk videos.
Ultimately M&S Direct will offer greater choice and flexibility for customers, as we provide the convenience to order online and collect in-store and vice versa.
Last summer we launched our Food to Order catering service, which enables customers to make their food selection online and then pick up in-store.
We will make even greater strides to become more convenient for our customers
with the introduction of the next phase of this service. An in-store collection service for general merchandise will be trialled in 50 UK stores in autumn 2009.
Customers will be able to order online and then pick up in-store. As well as order in-store for pick-up in-store or delivery to home. It will give all of our customers access to the full M&S range from their local stores, and the convenience of picking items up at a time that suits them.
Sales of M&S lingerie in France and home furnishings in Spain have soared this year after the launch of our international delivery service in November 2008. The service gives UK customers an opportunity to send M&S clothes and lingerie, as well as selected beauty products and home accessories to friends and family in France, Germany, Spain, the US, Canada, Australia and New Zealand.
M&S is the first British retailer to deliver internationally to New Zealand, and one of only a few that ships to Australia and Canada. It underlines our commitment to grow sales of M&S Direct and build on our momentum overseas. We will be extending the delivery service to more than 70 additional countries this autumn 2009.
Boasting an online catalogue of more than 550 wines and a string of awards, the launch of our Wine Club in November seemed the logical next step. Early signs are encouraging, with almost 4,000 subscribers receiving a case of wine on a quarterly basis. Wines, which are delivered free, are hand-picked by our team of specialists. They also include tasting notes and can be enjoyed while viewing instructional ‘tasting videos’ online.
The ability to contribute reviews and ratings has provided customers with an independent verification of the goods they are shopping for. Since the service was launched in June 2008, reviewed products have received an average rating of 4.1 out of 5. As a result, sales of well-received products have
increased by as much as 20%.
Our focus remains squarely on improving our online shopping experience and on
integrating our sales channels to give our customers greater flexibility. The look and feel of the site is critical to providing customers with what they want, and we will refresh our website this year. We will offer more opportunities to interact with our customers by building on the success of ratings and reviews, and Your M&S TV.
We will also improve our online advertising partnerships so customers are better directed to promotions when seeking a deal.