Extending M&S's Outlet Stores to Online Customer

Domain : Retail

M&S briefed us to launch a new standalone online outlet offering 1,300 clothing products across womenswear, lingerie, menswear and childrenswear, as well as a range of home products. Built on Amazon’s Webstore platform, order management and delivery operations would be handled by Fulfilment by Amazon (FBA) which meant M&S didn’t need to make an upfront investment in physical infrastructure.

To start selling excess stock at the earliest possible opportunity, M&S asked us to launch the new outlet in just 5 weeks! In order to design, develop, test,and deploy the new store with a full catalogue available to shoppers to such a demanding timetable, we developed a 2-stage project plan which prioritised the early delivery of a minimum viable product. A stage 2 release soon after the initial launch would incorporate integrations with warehouse management, shipping and refund systems to automate key operational processes.

Approach
Our team created a clean, crisp front end in a fully-responsive format for M&S, and configured the back end of the Amazon Webstore so M&S staff could content manage the majority of the site after deployment.

For the initial launch, we imported M&S’s entire product catalogue for the outlet which, with all the associated variations in colour, size and price, which amounted to a total of over 55,000 SKU’s. Combining Amazon’s Webstore platform with Fulfilment by Amazon (FBA) enabled us to build a highly scalable, robust and secure outlet for M&S, utilising Amazon’s tried and trusted shipping and returns solutions while also enabling shoppers to use their Amazon account to place orders on the site.

Solution

M&S’s new online outlet was launched in February 2012 with PR support and a prominent feature on the homepage of M&S’s main site to drive traffic to the site. Sales started within minutes of going live – we’d succeeded in creating a user-friendly buying experience for M&S in just five weeks.

We continued developing the site beyond the initial launch, upgrading the back-end of the new store by integrating Amazon’s Webstore with M&S’s warehouse management system (Red Prairie), DHL’s shipping system and Amazon’s refund system. Automating these processes was essential because, unlike the high street outlets, M&S‘s online outlet would feature regularly refreshed ranges from more recent M&S collections

The standalone online outlet was available for nearly four years before being integrated into the company’s main UK website as M&S Offers. By the end of 2015, M&S’s online outlet had contributed between £8-12 million a year to the company’s revenues, and firmly established itself as an incredibly efficient channel for clearing excess inventory. By extending their popular outlet offering online, M&S had achieved more than just creating a new channel to help clear unsold stock from previous season’s collections. The company had also responded to customers’ increased desire to bag a bargain by offering shoppers access to great value online