Marks and Spencer 2012 Annual Report Download - page 10

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Strategic review Marks and Spencer Group plc Annual report and financial statements 2012 08
“ Our plan for
M&S is on track
and customers
are seeing the
improvements.”
Marc Bolland
Chief Executive Officer
REVENUE
Healthy food
Our Simply Fuller Longer
and count on us™ brands are
now the number one and
two UK healthy eating brands
on a 12 month basis.
Chief Executive’s
overview
In 2011/12 M&S has performed well, with sales increasing by 2%.
In a challenging environment, we held market share, as our customers
continued to recognise our exceptional value and unrivalled quality.
As we navigate the business through
the short term, we remain focused on
our longer-term ambitions. Our plan for
M&S – which I set out last year – is
being delivered at pace. We have made
significant progress; encouraging our
customers to reappraise M&S and take
a closer look at what we offer.
The first part of our plan focuses on our
UK business and this year we gathered
real momentum; enhancing our brand,
developing our Clothing, Home and
Food offer and making our stores
easier to shop.
Brand
Our brand position ‘Only at Your M&S’
continued to underpin all our campaigns,
reminding customers of the unique
products that make M&S truly special.
Putting the spotlight on these exclusive
innovations increased sales. This year
we also launched our first ever sub-
brand advertising to support the
transformation of the likes of Autograph
and Limited Collection from ‘labels’
into distinctive, standalone brands.
Steve Sharp provides more information
on page 16.
Clothing and Home
In Clothing and Home we saw a mixed
performance with sales down 0.9%.
Lingerie, Menswear and Kidswear all
performed strongly and our core Home
departments of bedding and bath,
kitchen and dining also delivered good
growth. However, we experienced more
challenging conditions in Womenswear
and in big ticket furniture. In Home, our
performance was impacted by our
withdrawal from technology.
We worked hard to ensure that our
pricing structure and promotions were
right for our customers. This meant
balancing demand for great value
‘good’ items, with opportunities to
invest in our ‘better’ and ‘best’ ranges.
We highlighted the style credentials
of our core offering through the creation
of our M&S Woman and M&S Man
ranges and had a positive response
to our interpretations of key trends.
Our ‘Only at Your M&S’ proposition was
enhanced by three exclusive
partnerships this year. In menswear we
introduced the ‘Savile Row Inspired’
collection from acclaimed British tailor
Richard James. We also launched
unique design collaborations with Sir
Terence Conran and Marcel Wanders.
Kate Bostock explains more about our
Clothing and Home performance on
page 18.
Food
Our Food business delivered a good
performance. Sales increased by 3.9%,
despite continuing inflation pressures
and modest space growth.
M&S Food is built on a strong heritage
of innovation and quality, with a focus
on freshness and convenience.
Clothing & Home (GM)
£4.2bn
0.9%
Food
£4.7bn
3.9%
Multi-channel
£559m
18%
International
£1.1bn
5.8%