Marks and Spencer 2010 Annual Report Download - page 9

Overview 
Performance & KPIs p14 
Brand & Marketplace p20 
Operating & Financial review p26 
Governance p50 
Financial statements p78 
To find out more, visit marksandspencer.com/annualreport2010 05
125 days. Across the country, employees
rose to the challenge, more than doubling
this target to raise £2.8m benefiting over
500 local charities.
Foundations for the future
In October we held an Investor Day to
explain in more detail our long-term change
programme, which we launched a year
ago as Project 2020. This year we have
begun to accelerate the pace of activity
to fundamentally transform the way M&S
does business. It is:
– delivering a step-change in the way we
service our customers’ needs and the way
we operate our business;
– increasing the pace of change and
operational execution;
– accelerating Multi-channel; and
– driving our International business.
Our investment will not only create a
solid platform for future growth but will
also deliver tangible customer benefits
– from improved on shelf availability to
more convenient delivery times.
Handing over a stronger business
As we welcome Marc Bolland as our new
Chief Executive, I would like to reflect briefly
on what has been achieved over the past six
years. Marks & Spencer is a significantly
stronger business today than it was when
I became Chief Executive in 2004.
We have taken the business back to its core
values of Quality, Value, Service, Innovation
and Trust. We reconnected with our
customers and employees by focusing on
these values and launching the successful
‘Your M&S’ campaign, as well as Plan A.
Our revenues have grown by £1.9bn,
with International revenues doubling since
2004. We have significantly expanded our
UK store base, from 375 stores to almost
700 today including putting M&S in
previously under-represented locations –
like out-of-town and retail parks.
We have revitalised our clothing offer,
filling the gaps in our ranges, keeping up to
date with key trends and making our prices
much more competitive. We now offer
stylish, good value and great quality
products for all our customers – regardless
of their age, lifestyle or budget. Six years
ago, for example, only 12% of our total
clothing offer was at our opening price
points, compared to just under a third today.
The growth we’ve seen in our market
share shows us that this approach is
working. We have strengthened our
performance across all areas of clothing –
in womenswear, lingerie, menswear
and kidswear – and our market share
has risen to 11%.
INNOVATION
Above: Show stopping desserts This year our
pudding experts created the inside-out trifle, with
layers of swiss roll on the outside holding a filling
of custard and raspberry jelly. Also popular was
the Snow Storm – inspired by old fashioned snow
globes it’s made using transparent vanilla jelly
interspersed with coconut flakes on a white
chocolate panna cotta base.
QUALITY & INNOVATION
Left: In print Our Limited Collection geometric print
dress was our take on the graphic prints displayed
on the 2009/10 catwalk. Using the latest digital
print technology, it was a hit with both customers
and the fashion press, named by Sunday Times
Style Magazine as ‘the best print dress on the high
street – ever.’
QUALITY & TRUST
Left: Cashmere Goats John Worley, our knitwear
product technologist conducted a fact-finding visit
to Inner Mongolia to discover more about the age
old production of cashmere, which we use in our
luxury knits. John’s hosts showed him how they
comb and remove the goats’ hair by hand to
ensure it’s of the highest quality. You have to
comb one and a half goats to collect enough
fibre to produce one men’s jumper.