Marks & Spencer’s former digital boss has said the troubled retailer should consider a tie-up with online giant Amazon.
The British high street stalwart has had a rocky past few years, with profits dropping 75 per cent last year, and recently announced plans to shut more than 100 stores.
On Wednesday, Marcus East, who served as global digital director under previous M&S chief executive Marc Bolland, told BBC 5 Live: “For a lot of retailers, whilst they’ve put up a great fight ultimately working with the likes of Amazon is probably a good way to tackle the digital space.”
When asked whether M&S should be working with Amazon, he added: “I don’t know what the dynamics of the business are today, but they’ve got to be looking seriously at it.”
Amazon has been creating waves in the UK retail sector in recent years, through both its partnership with Morrisons and the launch of its Fresh food delivery service in the South East.
The tech firm’s foray into UK retail is believed to be a major factor in Sainsbury’s decision to attempt a merger with Asda, although experts have suggested Amazon could cement its position in the market with a full takeover of Morrisons.
Meanwhile, M&S has been criticised repeatedly in recent years for its failure to refresh its clothing business, as it relies on the food and drink arm to keep stores going.
The retailer has also been falling behind on the digital front, lagging behind competitors with its online shopping offering.
Laith Khalaf, senior analyst at Hargreaves Lansdown, said in May that the company was “simply struggling to make progress in a world where a compelling mobile app is every bit as important as a presence on the high street”.
M&S’s share price has reflected customers’ dissatisfaction with the current structure; the stock value has halved over the past three years.
The group hung on to its place in the FTSE 100 by the skin of its teeth in the latest reshuffle, but Mr Khalaf warned the firm had merely won a “stay of execution rather than a full pardon”.
