A Marks & Spencer store in Shanghai. [Photo/dfic.cn]

In 2013, it launched a virtual store on Tmall where it sells apparel and accessories. It also expanded its food category on the Tmall store.

The retailer also is looking to work with a local partner to drive further growth in the country. Rayfield said a strong local partner with excellent local experience and expertise will accelerate growth across China.

Jason Yu, general manager of Kantar Worldpanel, said the British retailer-with major business in China-has challenges in luring more visitors to its stores in Shanghai as a result of a vague market position, which is sandwiched between high-end luxury brands and rapidly expanding fast fashion brands.

"Marks & Spencer's lacks a high-end image in China among consumers, yet it is not responding as quickly to customers as are fast fashion brands," he said.

The retailer said its clothing positioning in China is to offer "exceptional quality and confident style", and it improved its size ratio based on customers' needs in China and applied Chinese sizing information to some products.

Group pre-tax profit last year fell 14.2 percent to 564.3 million pounds ($943 million).

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