Marks & Spencer Share Price: M&S Profits Fall 20%
M&S has fallen between the cracks of keeping its existing demographic happy, while also appealing to a younger breed of shopper, who chooses to shop at the likes of Primark or some of the more stylish boutique brands, as well as the likes of Next, who have a much more efficient online operation. This decline in the M&S share price eventually resulted in it being dropped out of the FTSE 100 towards the end of last year, before the shares hit new record lows of 74p in the middle of March. We’ve seen a modest rebound in the M&S share price since then, but the road back is likely to be a tough one, given its problems predated the onset of the coronavirus pandemic, as well as the fact that it occupies a position as a cross between a general retailer and to a lesser extent, a food retailer, at a time when most of their stores like a lot of other retailers are closed. Never the same again strategy. As far as the new 'Never the Same Again' turnaround strategy is concerned, the focus appears to have shifted much more towards online with the Ocado tie-up being at the centrepiece of it. Some 6,000 M&S lines will be added to the Ocado food range in time for the September switchover, as the company ramps up its food offering, while at the same time adding 1,600 clothing and home products per year, so that the Ocado retail platform not only offers food but a wholesale online retail experience.