Key Highlights–
- Marks & Spencer overhauls fashion supply chain to double online non-food sales to nearly £3 billion.
- New fashion head John Lyttle outlines plans for end-to-end “factory to floor” transformation.
- Retailer eyes long-term supplier partnerships and digital agility after major cyberattack losses.
Marks & Spencer is revamping its fashion supply chain “from factory to floor” as part of a sweeping strategy to double annual online non-food sales to nearly £3 billion ($4 billion). The overhaul, led by new Fashion, Home and Beauty Managing Director John Lyttle, aims to turn the 141-year-old British retailer into a data-led omnichannel brand.
From Recovery to Reinvention
Speaking to Reuters in his first interview since joining M&S in March, Lyttle said the company has “regained its footing” after an April cyberattack paralyzed online operations and erased about £300 million in profit. Despite the setback, Marks & Spencer has staged a strong recovery under CEO Stuart Machin, with 2024/25 profits at a 15-year high and stock performance near decade peaks.
Fashion Business on the Rise
Over the past three years, M&S’s Fashion, Home & Beauty (FH&B) division has grown by 9%, with market share climbing to 10.5% from 9.1% in 2021/22. The company now wants to capitalize on this momentum by reengineering its logistics network.
Lyttle said Marks & Spencer is rethinking every link in its supply chain, from manufacturing and warehousing to last-mile delivery, to match the speed and flexibility of fast-fashion rivals like Next and Primark.
“So from where we make our goods, to how we flow that all the way into our warehouses, how our warehouses operate, and then how we feed those products out to our customers, whether that’s online or in stores,” Lyttle said.
A Global Overhaul for Local Agility
Like many global retailers, the British brand Marks & Spencer is revising its sourcing model in response to disruptions caused by COVID-19, the war in Ukraine, and shipping delays in the Red Sea. The brand primarily sources from China, Bangladesh, India, Vietnam, Cambodia, Sri Lanka, Pakistan, and Turkey. However, it now plans to establish long-term supplier partnerships to secure consistency and reduce volatility.
According to Lyttle, M&S has made progress in consolidating suppliers and reducing procurement complexity; However, further improvements can still be made. “We have much more opportunity to go after through resetting how we buy, unlocking more margin from our scale, increasing cost discipline and reducing complexity,” he said.
Investor Confidence Builds
Investors have taken note of M&S’s transformation. Dominic Younger, fund manager at Columbia Threadneedle Investments and one of the retailer’s top shareholders, told Reuters that while Marks & Spencer has already made “huge and hard-won strides” in fashion, “one of the most exciting aspects is modernising the clothing supply chain.”
With a clothing customer base of 21 million, Lyttle said the supply chain revamp could double online Fashion, Home and Beauty (FH&B) sales from £1.4 billion in 2024/25 and lift online operating margins into double digits. M&S also targets raising online’s share of total FH&B sales from 34% to 50% in the medium term.
“If you look at our online sales participation today versus the market, we’re about 10 percentage points behind,” said Lyttle. “There’s clear headroom to close that gap.”
The Road Ahead for M&S
As global fashion retail becomes faster, leaner, and more data-driven, Marks & Spencer’s digital overhaul represents more than a logistics upgrade; it’s a cultural reset. The company is betting on technology, predictive analytics, and tighter supplier integration to match the agility of fast-fashion rivals without compromising on its hallmark quality. By investing in smarter warehouses, automated fulfilment, and deeper consumer insight tools, M&S aims to transform from a traditional retailer into a digitally fluent brand ecosystem.
The challenge, however, now lies in sustaining momentum and translating this operational shift into long-term growth across both online and in-store channels.
