Marks and Spencer 2008 Annual Report Download - page 26

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24 MARKS AND SPENCER GROUP PLC
Property
and store
environment
Over the last three years, we’ve
undertaken one of the biggest store
investment programmes within the UK
retail sector. We are focused on increasing
the number of stores we have; expanding
and modernising our existing footage; and
ensuring we offer our customers the right
stores in the right locations.
In order to achieve this, in November 2007
we announced that we are expanding our
space by 15% to 20% in the next three
to four years. We will also complete the
modernisation of our remaining store
portfolio in the next few years.
A bigger and better M&S
During 2007/08, we increased our total space through new openings and
extensions by 815,000 sq ft, or 4.8%. We opened more than 100 new stores
in the UK, ranging from a large high street store at 66,000 sq ft, to Simply Food
stores of around 7,000 sq ft.
We’ve made good progress against the strategy we laid out in 2006, and in
the year ahead we plan to accelerate our expansion, increasing our space by
a further 5.5% in 2008/09, by moving ahead on five fronts:
Expanding and modernising our city centre stores – in 2007/08 this
included Edinburgh and Belfast and in 2008/09 we will modernise our
Cardiff store.
Opening bigger out-of-town and flagship stores of over 100,000 sq ft
and expanding our space where we already trade – we extended London
Colney and Lisburn in 2007/08 and in 2008/09 we opened a new store in
Colliers Wood, with White City and Brooklands to open later in the year.
Creating a better presence in retail parks – we opened seven stores in
2007/08 including Preston, Kinnaird Park and Silverlink and have several
more in the pipeline including Swindon Orbital and Malvern.
Examining our portfolio of high street stores to ensure they are the right
size and in the right place – for example in 2007/08 we doubled the size
of the Eltham store in London and relocated in Derby and High Wycombe.
In 2008/09 we will open in Luton and take two stores down to one in
Worcester.
Building on the success of Simply Food (see below).
3 more green
success stories
to build on…
We recycled 75% of
all construction waste
in 2007/08, and aim to
achieve 85% in 2008/09.
How we design,
procure and build our
stores is now clearly laid
out in our Sustainable
Construction Manual
produced in conjunction
with the Building Research
Establishment (BRE).
Like-for-like store energy
usage is down by 4%.
Simply Food
In the last seven years, our Simply Food business has grown in the
UK to 299 stores trading in a highly competitive market. We opened
26 wholly-owned stores and 72 franchised stores (64 of which are
located on BP forecourts) during 2007/08, and based on their strong
performance, we believe there is potential for up to 70 new wholly-owned
and franchised Simply Food stores during 2008/09.
2
3
1
70%
Store modernisation
complete
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