Marks and Spencer 1998 Annual Report Download - page 6

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added more than 80,000 sq ft of selling space. There
was also substantial footage expansion in our
franchise businesses. In the coming year nearly half
a million square feet of retail selling space will be
added worldwide, including four new stores in
Germany and two in Spain.
Sales in our stores in H ong Kong were
severely affected by the economic situation, as were
those of all our franchise operations in the Far East.
While slowing down our investment plans, we
remain confident in the long-term future of the
region. Brooks Brothers, which already has 66
shops in Japan, opened two franchise stores in
Hong Kong in partnership with Dickson Concepts.
While trading conditions in N orth America
remained very competitive, Brooks Brothers (US)
produced further growth in sales and profits ahead
of the sector; Brooks Brothers (Japan) was affected
by the local economic situation. Kings Super
Markets recorded another year of sales progress,
although profits were affected by pre-opening and
other non-trading costs. In M arks & Spencer
Canada, our new chief executive officer is
implementing strategies to take the business
forward in this difficult market. We are
investigating the possibility of opening retail outlets
in Latin America.
The Group is investing heavily in the
infrastructure of the business. We are in the process
of rolling out a new generation of tills across the
chain at a cost of some £100 million. The new
equipment is quicker, quieter and easier to operate.
It will allow us to accept payment in a range of
currencies, including the euro. By the year 2000, we
will have replaced about 11,000 tills at the end of
their economic life, across our stores in the UK and
continental Europe. We have taken appropriate
steps to avoid the problems associated with the
so-called “ millennium bug” .
I would like to thank staff throughout the
Group for their enthusiasm and hard work during
the year. Their loyalty and commitment is our most
valuable asset. We encourage all members of the
company to develop as individuals to enable them,
1993 1994 1995 1996 1997 1998
5 YEAR GROWTH
£5,949.7m £6,543.7m £6,809.9m £7,233.7m £7,841.9m £8,243.3m
UP 39%
GROUP TURNOVER
1993 1994 1995 1996 1997 1998
5 YEAR GROWTH
£736.5m £851.5m £924.3m £965.8m £1,102.0m £1,168.0m
UP 59%
GROUP PROFIT BEFORE TAX
1993 1994 1995 1996 1997 1998
5 YEAR GROWTH
18.0p 20.9p 22.4p 23.3p 26.7p 29.1p
UP 62%
EARNINGS PER SHARE
1993 1994 1995 1996 1997 1998
5 YEAR GROWTH
8.1p 9.2p 10.3p 11.4p 13.0p 14.3p
UP 77%
DIVIDENDS PER SHARE
43 DEPARTMENTAL STORES
ALLOW US TO OFFER A MORE COMPLETE
SHOPPING SERVICE THAN EVER BEFORE
CHAIRMAN’S STATEMENT CONTINUED
4