Despite a successful Christmas trading period, Marks & Spencer has put its Sparks loyalty programme under review.
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Marks & SpencerDespite a successful Christmas trading period, Marks & Spencer has put its Sparks loyalty programme under review.
Accordign to the Retail Gazette, CEO Stuart Machin explained the retailer “needs to rethink Sparks over the short, medium and long term”. Machin said that the retailer’s festive 12 days of Sparks initiative “resonated well” with customers, but added “whether I like it is a different matter. I’d much rather we focus on quality, style and value”.
The M&S boss also ruled out launching member pricing via Sparks, like many of its rivals including Tesco, Sainsbury’s, Morrisons and The Co-op have done with their loyalty programmes.
“We know our customers would much rather have great products at everyday trusted prices. I’m quite stuck to that, because that’s what our customers tell us,” Machin added.
Loyalty schemes have been an important factor in grocery retail, and Sainsbury’s boss Simon Roberts this week said that Nectar Prices “powered” its stellar Christmas trading.
Machin’s comments come after M&S emerged as the big grocery winner over the festive period.
The retailer posted a better-than-expected 8.1% rise in like-for-like sales in the 13 weeks to 30 December, driven by market-leading growth in food and a strong performance in womenswear.
M&S food sales rocketed 10.5% to £2.3bn, up 9.9% on a like-for-like basis, while clothing and home revenue jumped 4.8% to £1.2bn.
Source: M&S, Retail Gazette
