M&S admits China setbacks

The executive chairman of Marks & Spencer today admitted to errors in the firm’s opening of its first shore in mainland China.

Stuart Rose said there was a “screw-up” over the supply chain which left the Shanghai food hall with low stocks in its first few months, as well as problems with sizing.

He told the Financial Times that the company wrongly thought its experience in Hong Kong, where it has 10 stores, would translate easily to the mainland.

M&S based clothing sizes for the Shanghai shop on Hong Kong sizing, but demand from mainland customers meant the smaller sizes sold out quickly.

“We need to get the A to Z of sizing right and we need better market research,” he said. “That’s what I call basic shopkeeping.”

Nonetheless Stuart told the newspaper that M&S is committed to building more stores in China, though it would “not rush to conquer China ... until we conquer the basics of shopkeeping” in the country.

He was speaking during his first visit to the company’s Shanghai store.

Last month Marks & Spencer unveiled a swathe of store closures and more than 1,200 job cuts in the wake of its worst trading for almost a decade.