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Amazon To Run M&S Online

By FashionUnited

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Amazon is reported to be close to a deal to take over Marks & Spencer's online retail operations. M&S chief executive Stuart Rose is said to consider the group's online offer to be 'non-core' as he focuses on restoring sales at the group's UK store chain.

The approach reflects Rose's reputation as a consummate traditional retailer, but will raise eyebrows in a market where an integrated online sales channel is seen by many as an essential part of a retail offer.

The London Evening Standard reports Amazon will take over all the M&S e-commerce operation, from running the site to processing transactions and delivering products. M&S sells clothing, homeware and gifts through its site. It also sells wine by the case, but has not entered the potentially lucrative but logistically challenging grocery home delivery market.

Amazon already operates sites for other retailers, including booksellers Borders in the US and Waterstones in the UK. However, it has recently had an acrimonious falling out with Toys R Us, with both sides taking legal action in a dispute over the US site run by Amazon for the toy retailer.

M&S told news agency Reuters that it is in talks with a number of potential operators of the site, but would not confirm that Amazon is in the running. Spokeswoman Sue Sadler said "It's an important selling channel for us and we're looking for ways of enhancing it. Talks are at an early stage and no deal has yet been signed."

Online traffic monitor Hitwise, which features weekly stats on The Retail Bulletin, ranks M&S alongside department store retailers rather than fashion. Its traffic figures for the week ending September 4 rank M&S behind Amazon, as well as Tesco and Argos, but ahead of traffic to the e-commerce sites operated by John Lewis and Debenhams.

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