Marks and Spencer 2013 Annual Report Download - page 10

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General Merchandise
£4.1bn
2.4%
Multi-channel
£651.8m
16.6%
Food
£4.9bn
3.9%
International
£1.1bn
4.5%
Chief Executive’s
overview
In a difficult marketplace M&S
performed well, with sales up 1.3%.
Our Food business delivered an
excellent performance, as we
strengthened our position as a
specialist retailer and benefited from
customers’ ongoing trust in our
provenance and innovation. Our GM
performance was unsatisfactory but
we took action and have set out a
clear plan for improvement. Our
International business performed
well and M&S.com delivered strong
growth.
We continued to steer the business
through the challenges of today’s
market, remaining focused on our plan to
transform M&S from a traditional British
retailer into a leading international
multi-channel retailer. At the end of the
second year of our plan, this strategy
remains as, if not more, relevant. Over
the last 12 months, we have driven our
plan with real momentum.
General Merchandise
Clothing sales were not satisfactory this
year and we took decisive action to
improve performance. A new team was
appointed to manage the business under
John Dixon’s leadership, supported by
Belinda Earl in the newly created role of
Style Director.
Having improved our operational
execution and stock management, our
customers benefited from better
availability. In a highly promotional
market, our tactical offers on selected
products were well-received.
We have a clear plan to address our
performance, with a renewed
commitment to quality and style. These
improvements are reflected in our
upcoming Autumn/Winter collections and
our progress will continue step by step.
Food
Our Food business delivered a strong
performance throughout the year, up
3.9%. Like-for-like sales were
consistently ahead of the market, driven
by our trusted quality, provenance and
ongoing innovation, which saw us refresh
25% of our entire range. M&S remains
the destination of choice for special
occasion food. Customers put M&S food
at the heart of their celebrations,
resulting in a record Christmas and our
best ever Easter performance.
The launch of our Simply M&S range,
coupled with our well-targeted offers,
helped value conscious customers do
more of their regular shop with M&S.
Greater employee ‘ownership’ of zones
in our Food Halls enhanced customer
service and our improvements to space,
range and display delivered better
on-shelf availability.
Stores
Our new store concept has now been
implemented in over two-thirds of our
stores – giving customers a clearer,
more inspirational in-store environment.
This year we started the second phase
of our store transformation – which
included the roll-out of our new
M&S Beauty and Home concepts.
Brand
Clothing
Home
Food
Stores
International
company
Drive
international
presence
A leading UK
multi-channel retailer
International
multi-channel retailer
Focus on UK
2012–2013 By 2015
Drive UK
like-for-like
growth
UK space and
like-for-like
growth
“ We have made good
progress as we
transform M&S from a
traditional British retailer
into an international,
multi-channel retailer.”
Marc Bolland
Chief Executive
Marks and Spencer Group plc Annual report and financial statements 2013 08Strategic review
Our plan
REVENUE