Marks and Spencer 2012 Annual Report Download - page 11

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Strategic review Marks and Spencer Group plc
Overview Strategic review Financial review Governance Financial statements and other information
Annual report and financial statements 2012 09
Brand, Clothing, Home, Food, Stores
UK space and
like-for-like
growth
Drive UK
like-for-like
growth
2012–2013 By 2015
International
company
Drive
international
presence
A leading UK
multi-channel retailer
International
multi-channel retailer
Focus on UK
OUR PLAN
66
stores
In-store
environments
Improved in-store
environment in 66
stores by 2011/12
year end.
Our continued emphasis on innovation
gave customers even greater choice,
with around 1,900 new lines launched
this year. We also showcased our great
value and unrivalled quality through
bigger, higher-impact promotions.
Customers trusted M&S quality and
turned to us for the most important
occasions, helping us deliver a strong
Christmas in Food. As set out by John
Dixon on page 21, we continued to
differentiate M&S as a specialist food
retailer, introducing authentic deli and
bakery counters and launching 100
‘unique to M&S’ international brands.
Stores
Following a successful pilot, the roll-out
of our new store format is now
underway at a rate of one store a day,
with completion expected in mid 2013.
The new look stores include clearly
defined areas for each sub-brand as well
as elements of theatre in the Food Halls.
Customers have told us that these
improvements have made our stores
more inspiring and easier to shop.
Our new segmentation approach means
that stores of equal size no longer carry
an identical mix of product. Stock is now
appropriately tailored to local
demographics, which will help attract
new customers and broaden our appeal
to those who already shop with us.
Space
We continued to develop our UK store
portfolio, through new stores,
developments and extensions. This
helped us deliver an improved Shop
Your Way service for customers.
Multi-channel
We performed strongly across the
internet and mobile channels, with
Multi-channel sales up 18%. This year
we introduced several new initiatives
aimed at improving the customer
experience. We extended the next-day
delivery deadlines for online ordering
and improved the functionality of our
website. We also created brand new
ways to shop with us, including the new
M&S Outlet website and Style Online.
As set out by Laura Wade-Gery on
page 26, we launched our first
international websites in France and
the Republic of Ireland.
International
Our International business delivered a
good performance this year. We
experienced double digit growth in our
priority markets of India, China and the
Middle East. We also paid particular
attention to managing our operations in
more challenging trading environments
– including Greece, the Republic of
Ireland and the Czech Republic.
We made good progress towards our
goal of making M&S a more
internationally focused business.
Development of our key markets
continued apace and we put our ‘bricks
and clicks’ strategy into practice with a
return to France.
Plan A
Plan A remains integral to the way we
do business. Our environmental and
ethical plan not only makes us a more
efficient business, it contributed a net
benefit of £105m this year too.
Our customers look to us to do the right
thing – and that includes making it
easier for them to live sustainable lives.
We are encouraging them to become
more involved in Plan A through
inclusive initiatives such as our new
‘shwopping’ campaign.
Looking ahead
Though the economic outlook remains
challenging, we are committed to the
delivery of our plan to become a
multi-channel, international retailer.
We will continue to manage the
challenges of the short term – improving
our existing business through a
combination of innovation, an agile
response to trends and a strong
promotional agenda.
In the year ahead, we will be more in
touch with our customers; the more we
listen the better we will anticipate their
needs and exceed their expectations.
We will continue to invest for the future;
encouraging customers – wherever we
trade – to take a fresh look at M&S.
Marc Bolland
Chief Executive Officer