Marks and Spencer 2013 Annual Report Download - page 20

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Strategic review
Focus on the UK
Marks and Spencer Group plc Annual report and financial statements 2013 18
“ We’re reasserting
our quality and style
credentials to give
all our products the
M&S difference.”
John Dixon
Executive Director,
General Merchandise
General Merchandise
Responding to customer feedback, we
started to reassert our quality credentials,
focusing initially on upgrading the
products we’re famous for. Our classic
£6 white tee shirt benefited from improved
styling, better fabric and superior
finishing, resulting a sales uplift of 15%.
We want customers to be confident that
regardless of fabric, cut or sub-brand,
they will find great fitting styles. So this
year we reduced the number of block
sizes used, creating more consistent
sizing across all our ranges.
Womenswear
2012/13 was a challenging year for
Womenswear, which nevertheless
delivered good performance in individual
categories. We bought with authority into
our advertised lines, selling over 46,000
of our featured M&S Woman £49.50
Military Coat.
We bought with greater confidence into
the seasons’ key trends and customers
enjoyed our interpretations. We sold over
115,000 items from the 60s-inspired
Monochrome trend and almost 350,000
pieces from our feminine, pastel Dolls
House collection.
We launched Twiggy for M&S Woman in
April. Offering versatile, flattering fashion
and attention to detail, it received a
positive reaction from customers.
Our Autograph range exemplifies the
best of M&S, with designer-inspired
sophistication and outstanding quality.
The range performed strongly this year
with sales up 4%. Our Indigo Collection
of casual, easy-to-wear outfits performed
well and comfortably sits as our second
biggest brand behind per una.
In March we appointed fashion expert
Hilary Alexander as Fashion Consultant
to per una. Her involvement includes
‘Hilary’s Edit’: a selection of key seasonal
outfits and an ‘Ask Hilary’ column on our
website addressing customers’ fashion
dilemmas.
Better editing of womenswear helped
strengthen the identity of our sub-brands
and reinforce our fashion credentials.
Our new store format features more
statement mannequin displays, and our
online Style Edit (see page 27) offers
easy-to-follow outfit inspiration.
This year we took decisive action to
address the performance of our
General Merchandise business;
bringing in a new team, listening
carefully to our customers and
improving our operational execution.
This action, coupled with a renewed
focus on quality and style, resulted in
early signs of improvement towards
the end of the year.
Overview
Over the last 12 months market
conditions were challenging and highly
promotional. We protected margins, with
targeted offers that demonstrated great
value. However, we retained the flexibility
to respond to market conditions, with
compelling online and category
promotions.
Early in the financial year, our
performance was impacted by
merchandising issues. We improved our
processes, tightened stock management
and changed the way we allocate stock
to stores. We also aligned our buying
procedures more closely with our
marketing activity – delivering record
availability on advertised lines.
In the autumn, we restructured the
business, creating four business units
with realigned responsibilities and
greater accountability. Combining
externally sourced talent with proven
M&S expertise, the new leadership team
has already made operational
improvements and has focused its time
on really understanding what our
customers want from M&S.
Womenswear market share
9.9%
0.5% pts
Menswear market share
11.6%
0.4% pts
Kidswear market share
6.4%
0.4% pts
Lingerie market share
26.8%
0.7% pts
General merchandise revenue
£4.1bn
2.4%
Kantar Worldpanel Clothing and Footwear
– value market share 52 w/e 14 April 2013
CUSTOMER INSIGHT
“ I want well
constructed
clothes that are
made to last,
with a flattering
fit and style.”
Rosie for Autograph
Our collaboration with Rosie
Huntington-Whiteley became
our best selling Autograph line
ever. Soft, sophisticated and
ultra-feminine, the new Rosie
for Autograph collection takes
its inspiration from gorgeous
rose blooms and Rosie’s love
of vintage textiles. Made from
sumptuous silk and delicate
French-designed lace, we sold
over 430,000 items this year.
GENERAL MERCHANDISE HIGHLIGHTS