Marks and Spencer 2011 Annual Report Download - page 15

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The housing market remained slow for the
third consecutive year. Consumers chose
to spruce up their homes rather than
move, updating looks using elements
such as cushions, bedding, towels and
smaller accessories. Big ticket furniture
items were less sought after. We
responded with more innovation, more
colour and more contemporary influences,
adding less expensive items to our ranges
for quick and easy updates.
Food
The food market has been slow this year,
with the majority of growth coming
through price inflation. Supermarkets
engaged in heavy discounting to draw
customers from each other. However,
though price remained a consideration,
consumers were not enticed by the
concept of cheap food. Instead they
wanted to feel as though they were
‘getting a good deal’ on quality food.
After more than two years of austerity
consumers wanted to treat themselves,
especially on important occasions like
Christmas and Valentine’s Day. Food was
seen as an ‘affordable treat’, with more
indulgent products such as steaks and
desserts proving popular.
At M&S we continued to differentiate
ourselves from the supermarkets by
constantly offering innovation through
introducing numerous new and updated
lines. We also used bigger promotions,
such as our ‘Roast Dinner for £5’, to help
our customers get more of the food they
love at great value.
Multi-channel
The market expanded rapidly this year,
with new transactional websites appearing
through media such as Facebook and
new players entering the online market.
Customers no longer regard e-commerce
as ‘new’ technology; consequently their
expectations are high and they expect to
be able to access brands at any time of
day from any location. Shoppers are
looking for an enhanced buying
experience, not just a solution to a
problem.
This year we used our website to engage
new customers, showcase more product
and run unique promotions. The
introduction of our mobile web and the
increased flexibility of Shop Your Way
made our products even more accessible
to customers.
Future trends
Throughout the year customers told us
that if they are going to spend they want
their money to be well spent – on brands
that they trust. We expect this to continue,
with customers seeking out meaningful
purchases that make a difference to their
lives.
In an uncertain environment, shoppers are
looking for confident retailers who will
deliver choice, quality, value and something
extra special. Our ‘Only at Your M&S’
messaging will reinforce our authority,
showcase our innovations and differentiate
us further from the competition.
Ç
Treat yourself This Valentine’s Day over 500,000
couples enjoyed a romantic night in with our gourmet
‘Dine In’ menu.
È
Move not improve Customers turned to M&S for
on trend accessories to brighten their homes.
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Consumer confidence index (GfK)
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