Advertise with fastmoving.co.za
 
 

M&S rues cost of stock shortages

FMCG SUPPLIER NEWS

ProcurementLeaders.com - Apr 19th 2012, 10:19

UK retailer Marks & Spencer has been hit by stock shortages caused by what the group’s CEO referred to as ‘not perfect buying’ 

The high street clothes stores reported loss of sales after the company failed to order enough items to support its key clothing business through the first months of the year.

“We were too short, so it was not perfect buying,” Marc Bolland, CEO, was quoted in the Financial Times as saying. “Everything that was on the catwalk [we had but]...we didn’t have enough of it.”

He estimated that the retailer sold 100,000 items of M&S Woman knitwear, but it could have sold 300,000. It also failed to buy enough of ‘on trend’ clothes to take advantage of consumer demand.

According to the Financial Times, M&S is now taking steps to avoid these kinds of issues – but denied that recent efforts to modernise its supply chain had been behind the shortages.  

Related News

Sales at Truworths Africa outperform its UK business
12/11/2019 - 13:24
Truworths, which was forced to write down its UK business by a third recently, said that retail sales in that country were flat in the 18 weeks to November 4, although its African operations performed better.

Why are these five UK retailers thriving as most others battle?
12/11/2019 - 10:32
British shops are being battered as the shift to e-commerce, intense competition and the fallout from Brexit cause catastrophic levels of store closures and job cuts.

Marks & Spencer targets new store concept in bid to drive growth
18/10/2019 - 10:18
For a taste of CEO Steve Rowe’s ambitions to transform Marks & Spencer Group (M&S), look no further than its newly refurbished shop in London’s Clapham neighbourhood.

Profits fall at Aldi UK but continuing expansion drive
18/09/2019 - 10:35
Aldi’s British and Irish arm saw its profits fall by more than a quarter last year due to price cuts and investment in its infrastructure. However, the discounter reaffirmed its plans to continue its rapid expansion, with London now a key area of focus.

RDI Reit offloads German shopping centre for €91m
18/09/2019 - 10:23
RDI Reit said on Wednesday it is making progress in offloading its German assets after selling its Bahnhof Center in Hamburg for €91m (R1.47bn).