Marks and Spencer 2001 Annual Report Download - page 2

2Marks and Spencer p.l.c.
markets, you must adapt your store formats
to the competitive realities of those markets.
The success of our franchise businesses in
26 countries around the world demonstrates
the value of local knowledge in adapting to the
local market. We will also continue to operate
our successful business in the Republic of Ireland.
Our strategic review also reinforced the
importance of the founding principles of this
Company, and it is to a contemporary version
of these that we are returning. We will sell 100%
own brand merchandise so we can guarantee
the quality for which we are known; we will
work hard to develop further our strong, direct
relationships with our suppliers; we will aim
for market leadership in every category in which
we trade; and concentrate on our principle
of ‘assisted self-selection’. The appeal and
availability of what is in our stores should speak
for itself, and products should be easy to find
and buy within attractive store environments.
Roger Holmes, Managing Director of UK
Retail, joined us in January 2001 and he and his
team have translated these strategic principles,
in a short space of time, into a solid operational
plan for our UK Retail business. Roger has
appointed new design talent to deliver the
clothing our traditional customers demand,
as well as to appeal to our younger customers.
With strengthened new teams now in place,
and a period of stability where they are
learning from each new season, I have every
confidence we will succeed, although there
remains a lot of hard work to be done.
So, what of the future? Stories in the news
often claim the Marks & Spencer brand has lost
its lustre, is no longer attractive, and that people
don’t want to shop with us any more. Naturally
I disagree with this view. This is still a unique
Company, with unique fundamental strengths
and the most dedicated staff of any retailer in
the UK. We are a large general retailer with
growing businesses in food, home furnishings,
gifts, beauty and financial services. We are the
country’s largest clothing retailer, attracting
millions of shoppers every week to 300 stores
in the best locations. We have a leading share in
the fastest-growing food categories in the market,
and unrivalled food development capabilities.
We have the scale and authority to develop clothing
innovations that other retailers just cannot match.
What retailer in the world would not want these
qualities? Our unique advantages offer a much
broader prospect for the future, beyond the scope
of the present Company and, once the recovery
platform is fully established, I am determined to
exploit this potential.
In summary, we have made mistakes and
have admitted them. We know that this year
our most loyal customers haven’t always found
the clothes they want in our stores. But, I stated
when I joined that Marks & Spencer used to be
the standard against which other retailers judged
themselves, not just in the UK, but internationally.
This year we have put a first class management
team and operational plan in place to complement
the inherent strengths and capabilities of our
people and I am personally committed to leading
the Company’s recovery. I am confident we have
now prepared the ground to get on with doing
what Marks & Spencer does best, and so restore
our reputation to full strength.
Luc Vandevelde
Chairman and Chief Executive
Chairman’s statement