Marks and Spencer 2008 Annual Report Download - page 15

marksandspencer.com/annualreport08 MARKS AND SPENCER GROUP PLC 13
Faster, fresher fashions
The journey from catwalk to high street is
faster than ever, with customers expecting
something new and different each time they
come into store. Satisfying this increasing
demand poses a major challenge for any retailer.
In response, we’ve adopted a phased approach
to introducing new stock, which means that
25% of our womenswear will be new every
five to six weeks. Within that, we have brands
that release new products into stores on
a three-week cycle. To make this quicker
turnaround possible, we are now buying
collections in two of our major brands (Limited
Collection and Autograph Weekend), from our
suppliers in Turkey, just eight weeks ahead.
Looking ahead
In 2007/08 we introduced great value at our
opening price points in both womenswear
and lingerie and in doing so made good
progress in attracting customers in the
under-35 age range.
2008/09 will be a tough year. It will be more
important than ever to continually improve
our ranges across all our price points, and to
ensure we’re responding to trends by quickly
getting new products into store. We’re now
working closely with our suppliers to achieve
even greater speed and flexibility, ensuring we
continue to keep pace with customer demand.
In store it is still important to ensure that the
distinctive offering of each of our sub-brands
makes the shopping experience an easy one
for our customers. In the year ahead, we will
push our brands even harder, for instance,
by expanding Autograph gifts and introducing
Autograph essentials, and by further reducing
duplication and filling the gaps in our ranges.
Finally, we’ll also be finding new and
innovative ways to present womenswear
online (see page 26).
Per una’s point of difference in
today’s retail climate, is in giving
styles the per una ‘twist’. From the
lining, to the buttons, to the trims –
the per una twist is the detail that
makes its customers feel special.
This was seen in the reintroduction
of suiting, where the emphasis was
on special details and quality fabrics
that are part of per una’s distinct
style. Following the success of
suiting, per una will introduce
Speziale Tailoring later in 2008.
Another key moment in 2007/08
was the launch of a 25-piece
capsule collection called GD25,
inspired by George Davies’ 25-year
career as a fashion innovator.
Cottoning on to Fairtrade
We sell about 4.8 million Fairtrade cotton
garments annually (that’s about 92,000 a week).
As the first major retailer to introduce a
Fairtrade cotton clothing range, which includes
the popular £5 Fairtrade t-shirt, we now work
with some 5,000 Fairtrade cotton farmers so
they not only get a fair price for their cotton,
but a Fairtrade premium that they can use to
improve their working and living conditions.
Clearer choices in lingerie
Selling 50 million knickers a year (that’s nearly two pairs of knickers every second),
and 25 million bras – it’s estimated that one in three women wear M&S lingerie.
To meet the underwear needs and tastes of every woman, we have in the past
introduced a wide range of different brands.
As part of our segmentation work, we reviewed our lingerie brands, matching
them to our different customer profiles, before fine-tuning our offer – cutting out
duplication and filling in any gaps. We now offer five brands – Adored, Autograph,
Body Solutions, Limited Collection and per una.
The move to fewer brands in lingerie has given women of all ages, sizes and
budgets, a clearer choice. It’s also helped us to focus on good basics at our
opening price points, as well as great value across the entire offer.
About us
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Shareholder information
per una
It was another strong year for per una. The brand enjoyed its seventh
successive year of growth with sales of £429m in womenswear and lingerie.
Growth came from a number of key product areas, including cardigans,
dresses, jeans, macs and coats. Our capital expenditure programme
positively impacted on per una sales, with the store modernisation and
expansion programme increasing per una footage by 15% for the year.
Online sales grew by 153%, and International sales by 40% for the year.
Left: George Davis,
Chairman of per una