Marks and Spencer 2010 Annual Report Download - page 27

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Overview p01
Performance & KPIs p14
Brand & marketplace p20
Operating & financial review
Governance p50
Financial statements p78
To find out more, visit marksandspencer.com/annualreport2010 23
What we sell
Home
Extending the range
Technology: Customers trust us
to provide an easy to shop, edited
technology range, including the best quality
branded goods and M&S own label products.
This year we set a target that all of our home
electrical products will carry a credible energy
efficiency rating by 2015.
Energy: This year M&S Energy customers
have grown from 65,000 to almost 300,000.
In January, we launched a Home Energy
Service division offering a range of energy
efficient products such as loft insulation and
solar panels.
Beauty: In spring we re-launched our skincare
offer in 30 stores and brought our existing
cosmetic ranges, under one new brand
Perfection. We’ve also improved our bath
and body products offer, with sales up 14%.
Looking ahead
We will continue to strengthen our Home
offer so we are in the best possible
position when confidence returns
to the housing market. We will
build on our work with other parts
of the business to showcase
products to customers better
and will continue to take
advantage of growth
opportunities. All of this will
be supported by our online
offer, which will play an even
bigger role in helping
customers make buying
decisions.
The market
The static housing market meant more
customers embraced the ‘Improve don’t
Move’ trend. From tableware to bedding,
we provide co-ordinated mix and match
products to help customers build an updated
look for their home in line with their budget,
with sales of core products such as curtains
increasing by up to 85% on some ranges.
Fashion and design
Our Home and Clothing divisions now sit
under the same management structure,
enabling us to better apply the lessons
we’ve learnt in clothing. This year we’ve
worked with our regional offices in Turkey to
reduce lead times and respond more quickly
to trends. Closer links with clothing have
ensured we better reflect the latest fashions,
colours and fabrics in our products.
Showcasing the range
Displaying our entire Home range is a
challenge given the square footage
requirements. We have continued to
address this, opening two new M&S Home
stores in Aberdeen and Cheltenham, with
Tunbridge Wells due to open in autumn.
There are now five M&S Home stores, with a
further 413 carrying homeware products.
Our Home catalogue and website play a
vital role in helping customers browse our
range. We have improved the online experience,
introducing fabric swatches and e-catalogues,
as well as offering more exclusive online deals.
As a result online sales increased by 20% and
11% year on year across Home and Beauty
respectively.
We have collaborated with other M&S
divisions to showcase our Home offer better.
We launched a Spa range in partnership
with Lingerie, selling bathroom favourites like
towels and sponges as well as spa wear.
We also launched ‘Kids at Home’ explained
on page 22.
M&S Home has performed well in a difficult market with sales up 2.1% on
last year. During 2009/10 we have improved the way we showcase our offer,
selling more home products in a lifestyle setting alongside food and clothing
ranges. A new management structure has also helped us build closer links
between our clothing and home design teams. The strength of the M&S
brand has enabled us to expand further in energy and technology,
launching a new Home Energy Services division this year.
QUALITY
Above: Sally Bendelow, Head of Home Design
at M&S. “Working closely with our clothing design
team, we’ve translated the key trends of 2009/10
into our Home range, such as our ‘In Bloom’
selection, which picked up
on the floral prints and
vibrant colour palettes seen
on the catwalk this year.”
Total Home Sales
£546.1m*
+2.1%
includes Beauty, which was not stated as part of the
2008/09 Home sales figure.
INNOVATION
Above: Tess Daly In October we launched our
award-winning range of Tess Daly beauty products
designed to help skin glow. Over Christmas a
product from the range was sold every 30 seconds.
* 52 weeks.