Marks and Spencer 2010 Annual Report Download - page 32

Download and view the complete annual report

Please find page 32 of the 2010 Marks and Spencer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 126

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126

Marks and Spencer Group plc Annual report and financial statements 2010 Directors’ report 28
How we sell
Multi-channel
Driving a Multi-channel business
Customers shop with M&S in many ways.
Whether they are shopping in store, at
home, in the office or over the phone,
our aim is that every customer receives
the same consistently high level of
service from purchase through to delivery.
Shop Your Way
Launched on a trial basis in July 2009, our
‘Shop Your Way’ service enables customers
to place clothing, beauty and homeware
orders either in stores, online or over the
phone. They can then opt for delivery to
either a nominated address or free to their
nearest store for collection.
Since roll-out, the latter has proved very
popular, with around 13% of customers who
order online choosing to collect in store and
driving footfall as a result.
‘Shop Your Way’ has been welcomed
by smaller stores, as the service brings the
wider M&S product catalogue to their local
customers. Weekly orders now stand at
£2.5m and following the successful trial,
‘Shop Your Way’ has been rolled-out to
over 300 UK stores, with a roll-out to Simply
Food stores underway in 2010.
Online
In October 2009 we relaunched our website,
responding to customer demands for a
more engaging, interactive web experience.
The refresh included the introduction
of catwalk videos and rotating images to
enable customers to see clothes from every
angle. We also introduced a more powerful
and flexible search facility allowing customers
to search by department for faster and more
accurate results. The upgrade includes
stock availability information to help avoid
disappointment. A pop-up shopping basket
means customers can now automatically
view and buy their selection without being
diverted from their shopping page.
Following the upgrade, the site was
ranked the UK’s most user-friendly retail
website in the 2009 Webcredible survey,
up from eighth in 2008. The improvements
have also increased revenues, with
conversion rates up 9% since launch.
Online clothing market share has also
increased from 5.3% to 5.6%.
Multi-channel: This year we have brought all of our shopping channels under the
same management to allow us to focus on becoming a seamless multi-channel
business, providing customers with the same high quality service every time
and whichever way they choose to shop with us. We’ve delivered another
strong performance in our Direct business, increasing sales by 27% to £413.3m
and remain on target to achieve £500m by 2010/11. This year we’ve also
launched ‘Shop Your Way’, to provide customers with more flexibility and
choice in their delivery options.
SERVICE
Above: Catwalk style Customers told us they
loved shopping online with us, but that static
images made it hard to tell if an item of clothing
would suit them. As a result, we’ve introduced
catwalk style videos so customers can view the
product from every angle and better envisage how
it might look on them.
QUALITY
Left: Swatch this space As part of our website
upgrade customers can now view actual fabric
swatches for products across our Home range.
The high clarity images provide a more accurate
depiction of colour and pattern, giving customers
greater confidence in their purchase. Since launch
Home sales online have increased by 20%.
Our Stores, Total UK Portfolio:
690
1 0 Premiere
42 Major
242 High Street
46 Outlets
1 5 6 Simply Food (wholly-owned)
1 9 4 Simply Food (franchises)
New UK stores opened in 2009/10
30
Total square footage
1 5 . 4 m
M&S Direct Sales
£413.3m*
+27%
Includes: Website, home catalogue, flower
and wine delivery, Food to Order party catering
service, lunchtogo and call centres
* 52 weeks.