Exclusive: Marks & Spencer exits home energy market to focus on ‘better retail’

The decision to exit energy, which Marks & Spencer has offered customers for several years, is part of the retailer’s efforts to simplify its services offer following the launch of M&S Connect – bringing together banking, services and Sparks loyalty teams – and to “focus on the services and experiences that will make us a better retailer”.  

The creation of M&S Connect was designed to create a single digital identity for customers to better understand their requirements from the retailer and to encourage membership of Sparks and shopping through the M&S app.

M&S decided its energy business, which has 60,000 customers and is only a small part of its operations, is not a strategic priority.

M&S Connect director Kirsty Ward said: “We want to simplify our services offering and focus on serving our customers brilliantly and giving them more reasons to shop with us. As a result, we have decided to step back from providing energy and ultimately, our partnership with Octopus Energy.”

Encouraging adoption of the app and Sparks is a priority for M&S as it pursues its strategy of “reshaping for growth” and takes advantage of omnichannel opportunities.

M&S revealed in its Christmas trading update that there had been a 33% rise in sales through its app, and active users increased from 4 million to 5 million.

M&S has contacted its energy customers to inform them of the change and they will remain on equivalent tariffs with Octopus.