Marks and Spencer 2007 Annual Report Download - page 28

26 MARKS AND SPENCER GROUP PLC www.marksandspencer.com/annualreport2007
I said when I rejoined the business in 2004 that M&S was a
great business with significant strengths, but one that needed
radical change to become world-class again.
Three years on, this review of our operations in 2006/07 aims to
give you an insight into the scale of the changes we have made
and a sense of the ambitions we have for the business in the
years to come.
The year ahead will, as I said at the beginning of this review, be
critical in creating a sustainable future for the Company.
We believe that we can carve out a unique position for M&S
through our commitment to a simple, rigorous plan and to our
core values of quality, value, service, innovation and trust.
This, coupled with our scale, provides us with an authoritative
and well-differentiated position in the markets in which we trade
and sets us up well to continue to earn people’s trust and to
deliver consistent, profitable growth.
The management changes that we have made over the past 12
months will be crucial to our ability to deliver on this simple plan.
The immediate economic outlook is undoubtedly more difficult.
We expect costs to rise ahead of overall growth in the market-
place, which means that we must find new ways to increase
our sales.
In the coming 12 months, we will remain relentlessly focused on
our plan of offering great products, in great stores with great
customer service.
We will also pursue new opportunities through new space at
home and abroad, new product and service offers, and our re-
launched website.
We will continue to improve our product offer, both within our
existing ranges and by filling gaps with new products we
haven’t offered before.
Our major brands, from ‘Autograph’ and ‘per una’ to ‘Limited
Collection’ and ‘Blue Harbour’, will be key in segmenting this
offer and making it easy to shop.
Great prices and excellent quality, combining to provide
outstanding value for our customers, will remain key to our
competitiveness in the year ahead.
Our property strategy will increase our reach significantly, as will
our direct business, starting with our new website. This, coupled
with our store modernisation programme, will help to ensure we
have the right offer, in the right space, in the right place.
However, we won’t see the full benefit of this work unless we
offer first-class service. We know we need to make further
improvements here, despite the great strides we have
made already.
We also still have a great deal of work to do to modernise our
infrastructure so that everything from our warehouses to the
technology behind our tills and financial systems is fit for the
growth we are aiming to achieve in the years ahead.
Through all of this, we will keep listening to our customers.
Their views and demands have moulded M&S in recent years
and I want this to continue.
This is crucial in areas such as customer service and product,
but also just as important in terms of how we are dealing with
social, ethical and environmental challenges through Plan A.
Our customers want us to succeed, but they want proof that
success does not come at a cost to society or the environment.
The progress we have made has only been achieved through
team effort which, for us, means all our 75,000 staff. I am
grateful for their commitment and support and delighted that
we were able to pay everyone in the Company a bonus, at a
total cost of £91m, for the second year running.
In future we will be linking all bonus payments more closely to
performance and improving service standards. We are geared
up to reward people well for great work.
Our suppliers play a crucial role in ensuring that we offer great
value, innovative products. Their continued dedication to M&S
and our customers is highly valued.
Lastly, I’d like to thank shareholders for their continuing support,
which has been vital in allowing us to take a long-term view and
prepare the Company for future growth.
Stuart Rose
Chief Executive
Looking ahead