Jan 10, 2022
M&S steals retail crown back from upstart online rivals
It felt like a sign of things to come in January 2020 when the market value of upstart fast-fashion retailer Boohoo overtook that of the venerable Marks and Spencer, once the biggest clothing retailer in the UK. But two years later, M&S is worth comfortably more than Boohoo and its online rival Asos combined. Kate Calvert, retail analyst at Investec, said much of the bifurcation in share price performance was down to stock-specific issues, such as the heavy restructuring at Marks and Spencer or JD Sports' bold acquisitions in the US. But there are also some sector-wide issues. Online competition has grown - from ultra-cheap operators such as China's Shein, established rivals such as Germany's Zalando and global players such as Hennes & Mauritz and Inditex, which have poured investment into ecommerce capability. Many of the factors that helped online retailers in the early stages of the pandemic faded away. Their commanding positions in these markets give them more clout with suppliers and shipping companies than online entrants such as Made.com or AO.com can wield.
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