Marks and Spencer 2007 Annual Report Download - page 22

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20 MARKS AND SPENCER GROUP PLC www.marksandspencer.com/annualreport2007
OUR CUSTOMERS
service
Our core customers continue to be
those aged 45 plus. In fact, some
75% of turnover comes from this
group. However, we continue to
appeal to a broad church of
customers and are growing
customer numbers and sales
across every age group. Listening
to all these customers is crucial
to ensure we get our offer right.
During the year, we conducted
around 200 customer focus
groups on some 40 topics.
These sessions cover everything
from what our customers think
of the quality and value of our
clothing to our new website
and Plan A. As a result of these
sessions some products might
not make it onto the shop floor
while others will be changed or
bought in greater number.
Customers’ views about our
products have improved. However,
those aged between 45 and 54
told us that they wanted more
evidence that we will continue
to make our products better,
increase choice and continue
to be competitive on price.
Attitudes were most favourable
among our core customers
but we saw gains across all
age groups.
Scores on the style of our
clothes went up 16% and 9%
more customers said they
were finding products that
appealed to them. But the
feedback also highlighted that
there is much more to do, such
as improving the consistency of
sizing and fit.
We have more Simply Food
stores in more convenient
locations and this is helping
us to attract new and younger
customers. The drive for fresh,
healthy food cooked from
scratch at home or partially
prepared also means that
customers are buying from us
more regularly, across different
stores and in more than one
location.
As well as shopping more
frequently across different
store formats, customers are
increasingly looking for the
convenience and flexibility
offered by other channels such
as online. In March, we re-
launched our website to better
meet this growing demand.
OUR PEOPLE
We’ve made important changes in people management in the last two years. In 2005/06, we
provided staff with more opportunities to progress within the Career Path structure introducing
additional responsibility steps coupled with more competitive pay rates. We continue to offer
among the top rates of pay in retail.
In 2006/07, we extended the Career
Path approach to store management.
As well as defining Management Career
Paths we carried out a skills audit
across all our store management teams.
This allows employees to easily map
their own competencies against those
required for development. We have
also developed more tailored training
programmes to help management
enhance their skills.
In 2007/08, we will complete the career
development structure, with improved
training for our 4,000 section managers.
In head office, following the successful
introduction of our general merchandise
Buying Academy in 2005, we launched
a Culinary Academy for our Food
Group, designed to improve individuals’
sensory, ingredient and culinary
knowledge. The first phase covering all
categories was completed during the
year and phase two which will cover
future food trends started in May 2007.
We have built elements of the training
into our induction programme for
new starters.
Our graduate scheme is one of the
most popular in the sector. Last year
we received over 6,500 applications for
135 positions. Most graduates spend
an intensive year working in a number
of stores across food, general
merchandise, human resources and
store operations. In April 2007, we won
three awards for our programme and
moved up to number 17 in The Times
Top 100 Graduate Employers list.
Some 3,500 people, both in stores
and head office, act as elected
representatives on our Business
Involvement Groups (BIGs). They play
a crucial role in maintaining an open
dialogue between senior management
and their colleagues. The BIG is
consulted on all important changes
in the business.
One important issue we consulted with
them on during the year was the Final
Salary Pension Scheme. We needed
to put the Scheme on a more secure
footing and to do this we had to make
changes. The Company agreed to
reduce the deficit by £500m using an
M&S property-backed structure and
we asked members to consider three
options about how their pension builds
up in the future. As a result of the
consultation we have made changes
to the choices we are offering our
members, one of which involves making
contributions. The changes will come
into effect in October 2007.
For the second year running we have
also completed our ‘Your M&S, your
say’ survey which helps us to
understand our employees concerns
and priorities better.