Last checked at 
LONDON (Alliance News) - British retailer Marks & Spencer PLC launched its long-awaited new website platform earlier this week, a move it hopes will help turn around it ailing clothes and general merchandise business and catch it up with rivals who were quicker at taking advantage of soaring online sales.
Marks & Spencer announced plans to bring its e-commerce platform in-house back in November 2010, ending a seven-year partnership with internet giant Amazon, which had run M&S's online platform.
The retailer's new and improved custom built website is one part of Bolland's GBP150 million investment plan. The money is also being spent on the continuing refits of the company's traditional department stores.
As part of the online revamp, Marks & Spencer has introduced much more editorial content onto the new website, including editors picks and outfit suggestions.
M&S hopes the site improvements will win back customers and increase sales at its general merchandise arm. The business has continued to struggle despite store revamps, a high-profile marketing campaign and a new women's clothing range.
UK consumers have preferred to shop at low-cost rivals on the high street, while major rival Next PLC, which drove its online business through the existing success of its directory business, has seen sales rise strongly in recent years. Other competitors have also reporting much strong growth online than M&S, while new online-only competitors have emerged, like ASOS PLC.
In a Christmas trading update on January 9, M&S said its trading performance in the third quarter was below expectations, after tough October and November months and heavy promotions failed to revive general merchandise sales. While its high-end food business is still growing strongly, sales were down 1.1% in the general merchandise business during the quarter, or 2.1% on a like-for-like basis. M&S didn't even provide figures for its online sales.
In its half-year report, M&S said that for the six months to September 28, 2013, multi-channel sales were up 28.5% in the period as traffic grew and more clicks converted into actual sales. It had said that mobile sales grew by over 70%, with sales from tablets accounting for about 25% of online sales, compared with only 11% a year ago. However, it didn't provide actual online revenue figures.
In contrast, Next said its online business continued to drive its overall trading performance and sales for the half year to July 27 2013. Online sales were up 8.3% to GBP597.3 million, while profit at the online business rose 13% to GBP156.1 million. That meant online sales made up over a third of its total revenues of GBP1.68 billion in the half.
Analysts at investment bank Jefferies are among those who think the new website could kick-start the retailer's online business.
"The long-awaited new, custom built, website unveiled Tuesday is impressive and industry-leading," Jefferies analyst Caroline Gulliver said in a note to clients.
"The combination of an improved website, an improved delivery offer, a quality product range at attractive prices, improved UK consumer confidence, supportive forex moves and good operational expenditure control, should lead to a step change in M&S' operating performance," Gulliver said
The investment bank upgraded M&S to Buy, from Hold, and raised its price target to 600.00 pence, from 480.00 pence. It also increased its 2015 and 2016 earnings per share estimates by 3% and 5% respectively.
M&S shares were one of the biggest gainers on the FTSE 100 Wednesday morning, up 1.2% at 502.39 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
Copyright © 2014 Alliance News Limited. All Rights Reserved.
