Marks and Spencer 2010 Annual Report Download - page 35

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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 31
our Simply Food offer into hospital
sites, opening three successful stores
at St Georges’ in Tooting, St Thomas’
in London and the Royal Berkshire
in Reading.
Our cafés and restaurants now offer
coffee and snacks as well as a sit down
meal. They are inviting and encourage
our customers to relax and spend longer
in our stores.
Service in store
We are committed to maintaining the
highest standards of customer service and
to do so, all of our stores are visited once a
month – twice in the case of flagship stores
– by mystery shoppers. Staff are scored on
a number of factors, such as service at the
point of sale, body language and how they
welcome customers into store. Over the last
12 months customer service has improved,
with an average mystery shopper score of
89%, up 5% on last year.
Foundations for growth
Our distribution network supports all of our
shopping channels, ensuring we can fulfil
customer orders and deliver efficiently.
Our stores
Over the last five years we have conducted
an extensive modernisation programme and
to date almost 80% of the M&S chain has
been updated. Our aim is to deliver a bright,
contemporary shopping environment where
goods are easy to find and where a range of
hospitality options are on offer.
Where possible we have added additional
space to our existing sites. Over the last
12 months we have undertaken major
developments of both our Liverpool store
and Pudsey store in Leeds, adding over
27,000 sq ft to these two sites alone.
This year we obtained planning
permission for a new 150,000 sq ft store
in Cheshire Oaks. Due to open in autumn
2012, Cheshire Oaks will be a state of the
art store, designed in line with our
environmental credentials. It will be our
largest store outside London – our flagship
Marble Arch store (pictured above) is
170,000 sq ft, whereas an average M&S
store is around 45,000 sq ft.
We have responded to the popularity
of retail park shopping, opening at four
new retail park sites in Swindon, Bristol,
Cheltenham and Aberdeen. We now have
30 stores in retail parks and plan to open
new stores at Haverford West and
Tunbridge Wells during 2010/11.
Our Simply Food stores, which are a
mixture of wholly-owned and franchised
stores, continue to perform well. With our
franchise partner SSP we have expanded
SERVICE
Above: Putting customers first Customer service
has improved throughout the year, according to our
mystery shopper scores, which are up 5% on last
year to 89%.
In September 2009 we announced plans
for a dedicated e-commerce warehouse,
due to open in 2012. You can find more on
the improvements we have made in this
area on page 34 of the IT & logistics section
of this report.
Looking ahead
Our aim is to make shopping with M&S as
convenient as possible for our customers –
from the way they buy through to the way
products are delivered. By bringing together
our channels we will provide them with even
greater flexibility and choice, allowing them to
shop in the way that best suits their lifestyle.
Integrating the channels also represents
a significant opportunity for us, if we can
grow the number of people that shop online
with us to be equal to the number that shop
in store. We will continue to capitalise on this
opportunity by developing our services in line
with changing shopping habits and emerging
technologies. The M&S brand values also
put us in a strong position to grow and
develop in this area, as trust is essential in
remote purchasing, be it via a mobile or on
the internet. Our customers trust us to
deliver, whichever way they shop with us.
INNOVATION
Right: Cheshire Oaks At 150,000 sq ft Cheshire
Oaks store will be the largest new store built by
Marks & Spencer for over 10 years. Due to open in
autumn 2012 the store will offer extensive hospitality
options, including a M&S café, restaurant and deli. It
will also feature a 950-space car park.