M&S Food Renaissance: Fightback Or Folly?

In the center of Clapham, South London, a change is taking place. A change critical to the future of one of our most heralded retail brands. Because this is where Marks & Spencer has chosen to showcase its new food store concept.

Bereft of any fashion whatsoever, this is what CEO Steve Rowe is staking the house on. And never have the stakes been higher.

The figures belie the reality, the majority of M&S profits are still generated from its much maligned clothing division. Margin in fashion dictates that to be the case. But what of revenues?

In the full year results announced earlier this year, food revenue stood at £5.9 billion while clothing contributed £3.5 billion, but around half of its profits. The temptation to stick with clothing must be very strong, but at what reputational risk?

M&S claim that two thirds of the senior leadership are new. That's a good thing but the pace of change and innovation needs to be ramped up dramatically. This store is more a statement of intent than anything else.

Clothing has become a millstone around the neck of the latest M&S turnaround, dragging the business down with its ponderous, laborious and outdated stores. To the point where one can't help feeling that if 100% of the M&S effort was directed at food, it would be a truly great business.

But make no mistake, this new store is an accomplished food hall, building on all the good things we've come to expect from M&S food convenience stores while, at the same time, differentiating itself.

We're protecting the magic and modernizing the rest

Whether it be free wine tasting, a wood-fired pizza oven, a barista to serve your favorite coffee or the mouth-watering selection of fresh fruit and vegetables, the whole place has an air of the artisan and authentic.

No successful grocery business has ever been built on the back of a glitter-ball pizza oven, but one wonders if this might just be the beginning of a real revival.

Margherita anyone?