Marks and Spencer 2016 Annual Report Download - page 10

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08
MARKS AND SPENCER GROUP PLC
STRATEGIC REPORT
CHIEF EXECUTIVE’S STRATEGIC UPDATE
CONTINUED
LOOKING AHEAD
There are many areas of our business that
we are still reviewing. In the autumn we
will report back on future growth channels.
We will also give an update on the plans
for our UK store portfolio, and the shape
of our International business.
I wrote at the start of this section that
I am proud to be your CEO. I’d like to
tell you why.
Ever since I started working for this great
company over a quarter of a century ago
as a Saturday boy in the Croydon store,
I have seen how it has improved the quality
of people’s lives through innovation and
giving customers what they want. M&S is
responsible for hundreds of high street
fi rsts that are now part of everyday life,
from fresh pasta and avocados to machine
washable bras and Lycra. M&S has brought
a better quality of life to the nation.
I have had a wonderful M&S career to date
and am privileged to have worked in almost
every department of the business. I’ve
never had a job I didn’t enjoy. And I’ve seen
fi rst-hand how M&S can be a force for good:
we have led the way in sustainability and,
through Plan A, this will continue.
The only time we have stumbled as
a company is when we’ve become
introverted, lost sight of the customer
or failed to keep pace with modern living.
People who know me will tell you
that I believe in simplicity, honesty,
e ciency and teamwork. More than
anything, I believe in our people
throughout the company.
M&S is a special company. Our food is
special. Our clothes are special. Our people
are special. Plan A is special. I am proud
of the role that M&S has played in people’s
lives. I want to be equally proud of the
role it plays in the future.
STEVE ROWE CHIEF EXECUTIVE
UNDERSTANDING OUR CUSTOMERS
BY UNDERSTANDING OUR CUSTOMERS...
CUSTOMERS CUSTOMER CHARACTERISTICS
Total
customers
32m 58%
WOMEN
54%
OVER 50
42%
MEN
22%
UNDER 35
30%
BOTH FOOD &
CLOTHING SHOPPING 90%
SHOP A
SINGLE MISSION
> A focus on style rather than fashion
> Better fi t that fl atters
> Better availability
> Clearer pricing and value defi nition
> Inspiring and e ortless experience
> Further ahead on trends
> Inspire with recipe ideas
> More adventurous mid-week
> More personal
> Inspiring and e ortless experience
...WE WILL DELIVER WHAT OUR CUSTOMERS WANT...
...INCREASING OUR CUSTOMER VISITS AND SPEND.
IN CLOTHING: IN FOOD:
...AND THEIR SHOPPING HABITS...
CUSTOMER by type CLOTHING
VISITS SPEND
per year per visit
FOOD
VISITS SPEND
per year per visit
Occasional
Core
Top
22m
7m
3m
2
8
26
4
11
75
£14
£28
£25
£9
£19
£14
Analysing our customers reveals that we
have three clear groups, defi ned by how
frequently they shop with us and how much
they spend, and we believe that tapping
into these behaviours and reconnecting
with our customers will help us to deliver
growth. We have been in listen mode and
we have heard some common reasons for
why customers are not always choosing
M&S, and now understand how to use these
to reignite their a ection and become
more relevant more often.