Marks & Spencer Group Plc (MKS), the U.K’s largest clothing retailer, said its Internet business is profitable as older, female shoppers move online.
The 128-year-old retailer, which reported 560 million pounds ($903 million) in multichannel sales last year, told investors that it made a profit in the fiscal year ended March 2012 at an investor presentation, which it posted on its website today.
Marks & Spencer is investing in its web offering to increase sales from the Internet and grab a bigger share of the market. The retailer is the third-biggest online clothing and footwear chain in the U.K. and controls about 6 percent of the market. The company has about 11.7 percent of the total clothing market in Britain, it said in May.
Marks & Spencer will come off its Amazon.com. Inc (AMZN) platform in early 2014 and is building its own dedicated e-commerce distribution center in Castle Doddington, England to fulfill online orders. The retailer is spending 250 million pounds to increase multichannel sales to as much as 1 billion pounds by fiscal 2014.
The retailer said its online customer is a typically an affluent female aged between 55 and 65 years old who owns lots of technology like tablets and smartphones and already banks and shops online.
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