Marks and Spencer 2009 Annual Report Download - page 9

Chairman’s overview
continued
Context, progress, and new challenges
It is five years since I returned to M&S as Chief Executive. At the time the
business was suffering from a lack of investment and offering poor value,
innovation and styling. The Board charged the management team and me
with reshaping the business and making it relevant for the 21st Century.
Specifically we were to:
Defend the business from an unwelcome takeover advance;
Make the business relevant for the 21st Century;
Develop the management team;
Articulate a strategy for the future;
Initiate the strategy; and
Effect a seamless transition to new leadership in an appropriate timescale.
Over the past five years we have invested heavily in the business and
re-established our value credentials. As a result we have grown market
share by both value and volume, and our brand is back in the hearts and
minds of our customers. In short, M&S is back on the map and well
positioned to emerge stronger from the downturn.
Managing through the recession
Although we have achieved much over the last few years, the process
we started in 2004 is not yet finished. The pace of change and growth
has been slowed by the recession, and it is still unclear how much longer
the recession has to run – but it will end. Our overriding priority now is to
lead the business through the recession, while continuing to invest for the
long term. In November 2008 we put in place six priorities (see left) to do this.
Ian covers our balance sheet in detail later, but I would l like to focus on
what we have done to retain our leading position in GM and improve our
Food business, by focusing on value, and on some of the difficult decisions
around costs. I would also like to cover the trust with which our customers
reward us for upholding high ethical standards in the way we do business.
1972 We launched a major
fresh chicken advertising
campaign that included a
television commercial as well
as newspaper advertisements
using the slogan: “Remember
when chicken used to taste
like chicken?”
125 YEARS OF INNOVATION
1970 We’ve always believed fresh is best.
That’s why we introduced sell-by dates on
our food in 1970. But as we were years ahead
of the government and other retailers, the idea
took some explaining. Our Sell-By PR campaign
helped to establish
the idea in the public
consciousness.
125 YEARS OF SERVICE
Above: Andy East New to M&S, Andy East is on
the Business Placement Programme for university
students, and is meeting more people than he ever
thought possible.
“I must meet a thousand people every day.
Working in the menswear department you
get chatting with people buying a suit for a
job interview or picking out clothes for their
holiday. I enjoy hearing their stories and
sharing in their excitement.”
Andy East, Trainee Manager
Our priorities
Retain our market leading position in GM
Improve our performance in Food
Drive our International business
Optimise margins and tightly control costs
Maintain a strong balance sheet
Uphold high ethical standards
5Marks and Spencer Group plc Annual report and financial statements 2009 Directors’ report