Marks and Spencer 2010 Annual Report Download - page 6

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Marks and Spencer Group plc Annual report and financial statements 2010 Directors’ report 02
Overview
Chairman’s overview continued
You will see from Ian Dyson’s finance review
on page 8 that Group sales increased by
3.2%. Positive UK like-for-like sales have
returned, up 0.9% and we have seen growth
across all parts of the business, as the
external market conditions improved and our
customers became more confident.
Food has now delivered a sixth
consecutive quarter of growth. As outlined
in John Dixon’s review on page 24 this has
been achieved by better value, availability
and product innovation, whilst continuing
to deliver outstanding quality. The pace of
development in Food will not slow and this
year we committed to renewing 25% of
our food range every year.
Our clothing market share continues
to grow, up 0.3% to 11%, as our customers
have started to invest in their wardrobes
again. Feedback from them tells us we have
got the products right and are in touch with
the latest trends. As set out in Kate
Bostock’s clothing review on page 16 we’ve
responded to customer requests for an easy
to wear, casual range with the launch of
Indigo Collection. We have also used our
‘good’, ‘better’ and ‘best’ pricing structure
to ensure we continue to offer something for
everyone, making it easy for our customers
to trade up and down within M&S to suit
their priorities and budgets.
Despite the economic challenges, we have
also renewed our commitment to Plan A,
our eco and ethical plan. We know
environmental issues matter to our
customers and that the recession has not
altered their level of concern. They continue
to look to M&S to lead the way, so this year
we set out our vision to become the world’s
most sustainable major retailer by 2015.
Since its launch in 2007, we have moved
from the implementation of Plan A to making
it the key driver of how we do business.
In doing so, we have become more efficient
and in 2009/10 alone Plan A generated
£50m additional profit, which has been
invested back into the business.
This year I worked with the Board to
identify Marc Bolland as my successor as
Chief Executive. Though we remain cautious
about the year ahead, the worst effects of
the recession are behind us. Furthermore,
M&S is in a stronger position and I am
convinced that Marc is the right man to lead
the business forward, as he brings a wealth
of experience to the role. As Chairman, I will
continue to work with the Board and with
the management team to ensure a smooth
transition until I leave the business.
Our performance this year*
Marks & Spencer has had a good year,
with our adjusted profits up 4.6% on last
year to £632.5m. Before the £80.9m bonus
we paid to our colleagues to thank them for
their extraordinarily hard work, profits were
at £713.4m, a 17.5% increase on 2008/09.
QUALITY
Above: Wrapping up As Britain’s coldest winter in
decades took hold customers turned to M&S to
keep them cosy. In December we sold enough
knitwear to clothe every woman between the ages
of 20 and 84 living in London, with sales of
women’s knitwear up 18%.
QUALITY & INNOVATION
Above: Extending the asparagus season
John Chinn has been growing asparagus for
M&S for over six years: “In 2003 I went to an
asparagus growers’ conference where an M&S
buyer gave a talk and invited any growers interested
in extending the season to come and see him.”
Since then John, with the help of M&S, has
doubled the length of the British season by
growing early varieties on the south facing slopes of
his Wye Valley farm. The later-cropping asparagus
are planted on the north facing slopes which are still
being harvested well into July.
Trust In March we launched Your Green Idea
a major Plan A competition, offering a chance
to win £100,000 to ‘green’ an organisation,
such as a school or a local community group.
Your Green Idea invited people to share their
ideas for new, ‘green actions’ that M&S
could implement under Plan A, so that all of
our 21 million customers can get involved in
helping the environment.
PLAN A: YOUR GREEN IDEA
For more information about Plan A see
p36 or visit marksandspencer.com/plana
* 52 weeks.