M&S revamps supply chain to boost online sales and cut costs

Marks & Spencer is overhauling its supply chain from “factory to floor” as part of a major push to double online sales in its fashion, home, and beauty (FH&B) segment to nearly £3 billion ($4 billion), company executives told Reuters. The move follows a cyberattack in April that disrupted online operations and cost around £300 million in lost profit.

Analysts highlight that M&S has already strengthened its market position: FH&B sales have risen 9% over the past three years, and market share increased to 10.5% in 2024/25 from 9.1% in 2021/22. The retailer now aims to boost online sales share from 34% to 50% by modernizing its supply chain, optimizing product range, and leveraging over 1,000 stores for “click and collect” and returns.

M&S is investing heavily in automation and infrastructure. A £120 million three-year investment will speed up warehouse operations, while total capital expenditure for 2025/26 is projected at £600–650 million, including £200–250 million for technology, logistics, and store upgrades. Analysts note that these measures could yield multi-million-pound savings and increase online operating margins to double digits, all without reducing M&S’s 63,000-strong workforce.

The company also plans to strengthen long-term supplier partnerships to reduce supply risks and simplify procurement processes, unlocking more margin from scale and improving cost discipline. Market experts emphasize that these initiatives position M&S to better compete with rivals like Next, while leveraging lessons learned from the cyberattack to accelerate digital transformation.