M&S overhaul to take on fast fashion rivals

MARKS & Spencer is revamping its computer systems in its latest move to battle faster- moving online rivals.

The IT overhaul would make the retailer more able to deal with changes in tastes and trends and save £30m a year by 2022.

However, the changes would cost it £25m initially.

M&S has been battered by changes in shopping habits, with the business losing customers to bricks-and-mortar rivals such as Zara and Primark as well as fast-fashion websites Asos and Boohoo.

These upstarts have thrived using so-called ‘agile’ tactics, allowing them to quickly replenish stocks to reflect the latest trends.

In a symbolic moment, Asos overtook M&S in market value in November for the first time.

But M&S boss Steve Rowe and chairman Archie Norman have vowed to make the business fit for the digital age. Changes announced yesterday will see M&S transfer 250 inhouse staff to Tata Consultancy Services, which is leading its technology overhaul.

Rowe said: ‘We are committed to transforming M&S for our colleagues, customers and shareholders.

‘Technology plays a huge role in this transformation – and having the right partners and model will enable us to be more agile, flexible and responsive.’ Its announcement came ahead of an update tomorrow on the store’s crucial Christmas trading period.

So far the holidays have proven a mixed bag for rivals, with Next, Poundland, John Lewis and Jigsaw defying gloomy predictions but Debenhams suffering a sales slump.

The technology changes are part of efforts to make the company’s back-office systems leaner and more streamlined, a spokesman said.