Marks and Spencer 2013 Annual Report Download - page 23

Strategic review
Focus on the UK
Marks and Spencer Group plc Annual report and financial statements 2013 21
Overview Strategic review Financial review Governance Financial statements and other information
Food
Our Food business delivered an
excellent performance in a challenging
market, with total sales up 3.9% to
£4.9bn. We outperformed the market
on a like-for-like basis, with sales up
1.7%, consolidating our position as
the UK’s leading high quality food
retailer. Customers trusted M&S
to deliver for the most important
occasions and our continued focus on
quality, innovation and availability –
coupled with the roll-out of our new
Food Hall format – helped us
strengthen market share.
Overview
Our market-leading innovation brought
over 1,900 new lines into our Food Halls
this year. From new international dishes to
healthy eating ranges, our innovative
products kept customers coming back
– offering greater choice and catering for
their changing tastes and priorities.
With value front of mind for customers, we
ensured our offer remained competitive
through a combination of independent
weekly price matching and well targeted
offers. We offset the commodity price
rises in the market, thanks to stronger
management of stock and promotions.
The introduction of our Simply M&S range,
coupled with everyday promotions such
as our 3 for £10 offer on meat and fish,
helped customers get even better value
from their weekly shop. Despite limited
budgets, customers were determined to
enjoy time with friends and family and
make the most of special occasions. Our
iconic Dine In deal supported this desire
to enjoy restaurant quality food at home
and proved consistently popular.
Quality, trust and provenance continue to
underpin everything we do – from our
relationships with suppliers to the
products we sell. In a year when the
industry was affected by supply chain
issues, our commitment to provenance
served us well, as customers continued to
trust M&S to deliver responsibly sourced,
quality produce. All our beef, pork,
salmon, poultry and in-season lamb
is sourced from the UK and the Republic
of Ireland.
Our commitment has been acknowledged
by numerous awards this year – including
the Ethical Corporation Responsible
Business Supply Chain Excellence award.
Quality at great value
In a highly competitive market we
launched Simply M&S: a range of 700
everyday food items that offer M&S quality
at great value prices. Hundreds of prices
were lowered and new lines added to give
customers even more choice. All Simply
M&S eggs are free range, bacon is British
and all tea and coffee is Fairtrade –
underlining our uncompromising sourcing
standards. The range complements
existing lines and highlights M&S’ superb
quality and value under one clear brand.
Since launch, we have sold over 350
million products.
Our high ethical and sourcing standards
continue to set us apart from the
competition. Our standards are industry
recognised; our leading animal welfare
policies earned us the Compassion In
World Farming Good Pig Award and our
fish is recognised by the Marine
Conservation Society for best-in-class
sustainable seafood practices. Our
bespoke feeding programme provides
our Scottish Lochmuir™ salmon with
exceptional flavour and we sold
10.8 million packs of fresh and smoked
salmon this year, up 16%.
Despite 2012 being one of the wettest
years on record, we maintained supplies
of high quality fresh produce, thanks to
our collaborative supplier relationships.
We delivered the finest soft fruits
throughout the summer, including the
exclusive ‘Driscoll Diamond’ strawberry,
especially named in honour of
The Queen’s celebrations. Over the
extended Jubilee week we sold a record
one million punnets of strawberries to
customers celebrating at home.
Food revenue
£4.9bn
3.9%
Market share
3.8%
level
Number of new lines
1,900
“ Customers trust
M&S to deliver quality,
innovative food for
every occasion.”
Steve Rowe
Executive Director, Food
A summer of celebration
With several opportunities to
celebrate during the summer, we
launched over 200 British-inspired
lines. We sold over 800,000 tins of
Diamond Jubilee biscuits worldwide
and in the first week of the Olympics
we sold over one million packs of
sausages and 350,000 burgers.
Simply great value
Simply M&S products are
independently price checked every
week to ensure the range is
competitively priced. The easy to
identify packaging features a
shopping list style labelling and is
mostly transparent so customers can
see the great quality of the products.
FOOD HIGHLIGHTS