UK: M&S's Rose admits to "mistakes" with Shanghai store

Stuart Rose told the Financial Times, however, that the clothing, food and home wares group was committed to building more stores in China and doubling the proportion of group revenues that come from international sales.

"We had a screw-up," Rose told the newspaper when asked about supply chain problems at the store in Shanghai.

Marks and Spencer opened the 45,000-square-feet store on Nanjing Road West, Shanghai's premier shopping street, late last year.

The FT said Rose admitted in an interview during a visit to Shanghai that his company had misunderstood the local market, assuming its experience in Hong Kong, where it has 10 stores, would translate easily to the Chinese mainland.

Specifically, problems with sizing clothes and with supply chains needed to be addressed.

"We need to get the A to Z of sizing right and we need better market research," Rose said. "That's what I call basic shopkeeping."

M&S first began expanding outside the UK back in the 1970s. But it retrenched earlier this decade, selling its operations in the United States and closing down company-owned stores in western Europe to focus on boosting sales at home.

In November 2007, it announced a fresh push abroad, setting a target for its international business to account for 15 to 20 percent of group sales within the next few years -- a plan reaffirmed by Rose in the FT interview. The proportion was just under 8 percent in the year ended March.

"We will not rush to conquer China ... until we conquer the basic of shopkeeping (in China)," Rose said, adding he had travelled to Shanghai to "put some urgency and drive" into efforts to solve the store's problems.