Marks and Spencer 2008 Annual Report Download - page 21

marksandspencer.com/annualreport08 MARKS AND SPENCER GROUP PLC 19
This not only gives our customers more
opportunity to enjoy asparagus, but also
enables them to support farmers like John
Chinn – winner of the ‘2005 Grower of the
Year’ award for innovation.
Additionally, all of our fresh beef comes
from the UK, much of it from Scotland,
and we’ve been working closely with Welsh
farmers to extend the lamb season by a
full two months. In 2008/09 we’ll introduce
home-reared products to local stores, such
as home-reared Oakham chicken in Scotland.
With no legally defined industry standard
for free range pork, we decided to review
all of the many standards and specifications,
so that we could introduce our own ‘leading
standard’. As a result we now offer in a
number of stores truly free range pork,
which is the first step towards meeting of
our Plan A commitment to convert all of
our outdoor bred fresh pork to free range.
All of our food is free…
from artificial colours, flavourings,
sweeteners and hydrogenated fats;
as part of our commitment to help
our customers eat well.
As of 1 April 2008 we became the first
retailer to remove all artificial colours and
flavourings from our entire food and soft
drinks range. It has taken three years to
remove artificial colours and flavourings
from over 900 products, with some more
difficult than others. For instance, finding
a natural colour from fruit and vegetable
extracts to replace the vibrant pink filling
of Turkish Delight.
We’ve also made excellent progress in salt
reduction, having reached our 2010 targets
in 11 out of 15 categories, including ready
meals and sandwiches.
The M&S food experience
Not everyone who eats in one of our
stores is an M&S food customer. That’s
why by improving the breadth of our in-store
hospitality options, and achieving a balance
between healthy eating and indulgence,
we’re able to introduce new customers
to our food. In fact, we’re one of the UK’s
fastest growing hospitality providers, with
over 12% like-for-like growth in the last year.
As part of our store modernisation
programme, in 2007/08 we increased our
in-store hospitality offer to create a repertoire
of unique breadth and quality. We now offer
five in-store hospitality options, including
239 cafés, 5 restaurants, 7 delis, 34 Hot
Food to Go counters and 2 M&S Kitchens.
Within these new formats we’ve stretched
the brand even further, for example offering
kids meals in our restaurant, as well as
steaks cooked to our customers’ preference.
Our deli bars also offer the option of a glass
of champagne and a greater volume of
fresh (and raw) ingredients, such as freshly
prepared salads.
Internationally, we look forward to opening
an M&S Café in our new Shanghai store
(see page 29).
Looking ahead
In 2008/09 we will continue to grow our
food business in line with consumer trends
for cooking from scratch and healthy eating,
and our programme to open more space.
Provenance and ethical sourcing remain
high on our agenda, and we expect the Best
of British range and our expanding Eat Well
range to help us make further progress in
attracting a younger customer. Our Simply
Food business is important here, and will
work alongside our hospitality business in
helping broaden our customer base.
Our move to become a more convenient
food shop is of increasing relevance, as
we expand our ingredients and introduce
branded food and household items.
Simply Food
We’ve expanded the
presence of our Simply Food
business (see page 24) so
that our customers can now
pick up a pint of milk, or a
ready meal from 299 stores
located across the country,
including airports, train
stations, and service station
forecourts. This year we
plan to open up to another
70 stores.
Kids count too
It’s not just food for grown-
ups where health matters –
we don’t believe in ‘dumbing
down’ our kids’ food either.
That’s why we relaunched
our entire range of children’s
products during 2007/08
so we could ensure every
product – even treats such
as our Easter eggs (see
above) and birthday cakes
– is completely free of
artificial additives.
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