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Marks and Spencer Group plc Annual report and financial statements 2010 Directors’ report 24
What we sell
Food
Year in review
Last year we laid down our plans to drive
the M&S Food business out of the recession
based on our founding principles of Quality,
Value, Service, Innovation and Trust.
We invested in margins to offer our
customers even better value while retaining
our commitment to deliver the best quality
food on the high street. We launched new
ranges like Simply
Fuller Longer,
improved our service
by making our offer
more convenient and more complete, and
remained focused on our strong
environmental and ethical principles. This
approach has seen us return the business to
positive like-for-like growth for the first time
since Q2 2007/08.
Our customers remain cautious about
the economic outlook, but we have seen
signs of increased confidence in their
spending. This has translated into a renewed
trend for buying treats and greater indulgence
around special occasions. Celebration and
Eventing categories delivered 8% growth
on last year and the new ranges of luxury
cupcakes and layer cakes have driven
significant additional sales.
Our lower prices allowed customers to
both indulge and economise across the
M&S Food offer. Our ‘Wise Buys’ range
continues to underpin our value proposition
– demonstrating our price competitiveness
on everyday products, whilst retaining the
highest M&S quality credentials.
Customers turn to us for restaurant quality
food and inspiration as they opt to dine at
home more often, rather than eating out.
We also provide a range of cooking
solutions. For customers cooking from
scratch, we have expanded our range of raw
ingredients and also introduced ranges of
authentic pastes and marinades. For those
in search of a more convenient option, we
have increased choice in our Cook! range
and remain the market leaders in restaurant
quality, fully prepared ready meals.
QUALITY
Delivering great quality food has always
been at the heart of our business and this
year we have given our customers the
highest quality without cutting corners.
We are the UK’s leading quality food retailer
and independent research from Millward
Brown shows that customers turn to M&S
ahead of the competition when they want
food that delivers something special.
M&S leads the field in home cooking
solutions and convenient ready meals.
Against an increased level of competition
our quality sets us apart. We achieve this
through first to market launches, like 1234
Cook, which allows customers to build the
meal from a selection of the finest, easy
to cook mix and match products and by
the continual upgrading of core ranges.
This year we improved our Gastro Pub
Shepherds Pie, moving from lamb mince
which included a selection of cuts – to
slow cooked, shredded lamb shoulder.
The change provided more texture and
a deliciously rich home-cooked flavour
and sales have increased by 11%.
In autumn we began a trial of fresh meat
and fish counters in Meadowhall, Sheffield,
and Bluewater, Kent. Not only is this a great
way to showcase the quality of fresh meat,
fish and rotisserie chickens; it also offers our
customers a more personalised service and
improved in-store ambience.
Over the last year we have strengthened our position as the leading retailer of fine
quality fresh food in the UK. Our Food business has now returned to growth and we
have delivered consistent improvements in like-for-like sales over every quarter.
At the same time we delivered volume growth of 3% as customers put more of our
food in their baskets than they did a year ago. We have achieved this by listening
to our customers and giving them the best quality food at great value for money,
while continuing our focus on innovation, healthy eating and ethical sourcing.
John Dixon Executive Director, Food
UK Food sales
£4.3bn*
+1.8%
Food value market share
3.8%
-0.1% pts
QUALITY
Above: Christmas wouldn’t be Christmas
without your M&S. Our Christmas and party food
was awarded the top rating in a Daily Mail
comparison against all the UK’s supermarkets.
Exclusive to M&S, the first ever British melons
were grown reusing the soil bed and plastic
tunnels from the earlier British strawberry crop
– so it is not only a great tasting fruit but it
also allows the farmers to produce two crops
from their land.
For more information about Plan A see
p36 or visitmarksandspencer.com/plana
PLAN A: BRITISH GROWN MELONS
* 52 weeks.