Marks Spencer scales back its home decor business in India

On the retailer’s website products listed under “home" are currently on sale; in several stores areas designated to the home collection have been vacated and replaced by the retailer’s regular inventory. It also retails these products on Reliance Retail backed e-commerce platforms Ajio and Myntra. On both sites, limited home collections continue to be sold.

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“Over the last two years we’ve trialed a focused range of homeware products in a small selection of stores with a wider range available online in India. As we continue to reshape M&S, we are reviewing our home décor offer to ensure we are offering the products our customers want, when and how they want. Customers can continue to purchase homeware through our flagship website marksandspencer.in and marketplaces Ajio and Myntra," according to a statement shared by the retailer.

M&S opened its first store in India in 2001. In 2008, it formed a joint venture with Reliance Retail to form Marks & Spencer Reliance India Pvt. Ltd. The joint venture is 51:49 between M&S and Reliance Retail.

It currently operates over 100 stores in India; home products are sold in over 20 stores. Overall the retailer sells women’s clothing, men's apparel, lingerie and kids wear.

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The move comes as M&S is undergoing a turnaround that was kickstarted two years ago. In 2022, the British retailer started a five-year plan to revamp business which included closing unviable stores apart from releasing more fashionable clothes. 

The turnaround—titled “M&S reshaped" is reaping results with the retailer ending financial year 2024 “in the strongest financial health since 1997", per the company's financials released online.

Following the pandemic, several large retailers entered the home decor category citing greater demand for home goods. Consumers stuck at home increasingly spent on their living space and bought new furniture and electronics. This led to a flurry of brands entering the space.

In 2022 both Marks & Spencer, and Sweden’s H&M launched home furnishings and décor collections in India. H&M’s continues to sell small decor items, dinnerware and linen products for the living room, bedroom, bathroom, kitchen and kids’ room. In 2021, Asian Paints said it is transforming into a home décor company offering wallpapers, hard furniture and design solutions, besides its core paint products.

The move also points to changes afoot at M&S in India.

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Earlier this year the company appointed Stephen Smy as the new India managing director following the departure of Ritesh Mishra in April. 

Smy spent over 25 years at M&S in various roles before assuming the India role.

M&S reported £13 billion in group revenues. As of March 2024 the company operated 408 stores in international markets; in the UK it operated over 1,084 stores. It also has a large food business.

Key Takeaways

1. In 2022, the British retailer started a five-year plan to revamp business which included closing unviable stores apart from releasing more fashionable clothes. 
2. In the same year both Marks & Spencer, and Sweden’s H&M launched home furnishings and décor collections in India. 
3. Earlier this year the company appointed Stephen Smy as the new India managing director.