Marks and Spencer 2010 Annual Report Download - page 5

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Overview
Performance & KPIs p14
Brand & Marketplace p20
Operating & Financial review p26
Governance p50
Financial statements p78
To find out more, visit marksandspencer.com/annualreport2010 01
Chairman’s overview
by Sir Stuart Rose
A platform for growth
This year M&S returned to growth, demonstrating the resilience
of the brand through difficult times. 2009/10 has been about
leading the business through the recession without losing sight
of our long-term plan or our core values.
We remain committed to building a world-class retailer
through increasing the pace of change and driving operational
excellence in the business; building our multi-channel capability;
growing our international portfolio; and, as the economy returns
to a stronger footing, reinvigorating our brand communications.
Our progress was interrupted – but not altered – by the
recession. Last year, we continued to implement short-term
objectives to guide M&S through the economic downturn.
As a result of this decisive action our long-term strategy
remains in place. We have built a strong platform for growth
and have improved or maintained market share in all our
core areas.
We grew because we managed our costs prudently, listened
and responded to our customers’ changing needs and stayed
true to our core values of Quality, Value, Service, Innovation
and Trust, reminding our customers of what makes M&S
different. This year we have worked hard to further improve
our quality and our customers have told us they have noticed
this improvement.
A year ago, I told you the Board had cut the dividend by
20.9%. This was not an easy decision but it gave us the
flexibility to continue to invest in the business despite the
downturn. Although we scaled back investment in new stores
we continued to invest in our infrastructure, particularly our
supply chain and IT systems.
We also invested in our margins, to give customers the
extra value they were looking for without compromising quality.
Whilst some retailers attempted to meet this need by repositioning
themselves as ‘low cost’, M&S continued to stand for value
and not just price – an approach that is serving us well as
consumer confidence returns.
“Leading your very special
business for the last six years
has been a pleasure and
a privilege.”
Sir Stuart Rose Chairman