Marks and Spencer 2013 Annual Report Download - page 25

Strategic review
Focus on the UK
Marks and Spencer Group plc Annual report and financial statements 2013 23
Overview Strategic review Financial review Governance Financial statements and other information
The market will remain challenging but
through our commitment to quality
and innovation, we will continue to
provide compelling reasons to shop
with M&S. We will offer customers
even greater choice, making better
use of our existing space and further
improving availability. In the year
ahead, we will concentrate on
providing more of what we know our
customers love, with the aim of
making every food moment special.
Our online Food to Order offer makes
entertaining even easier, with party-sized
portions and helpful menu suggestions.
Our Christmas Food to Order proved
extremely popular, with over 400,000
orders placed during the festive period,
up 5%. Our Wine Direct business was up
25% this year as more customers ordered
our award-winning wines and
champagnes by the case for delivery
straight to their door.
Service and speciality
Our new store format has now been
applied to over two-thirds of our Food
Halls, improving the shopping experience,
providing elements of theatre and
reinforcing our position as a specialist
food retailer. Selected stores now include
delis and we have rolled out artisan
bakeries to 330 stores, including 161
Simply Food stores. Bakery sales are up
20% as a result.
This improved in store experience, was
enhanced by even better customer
service. Our Customer Ready Food
initiative gave employees ownership of
zoned areas within the Food Halls –
ensuring they remained visually appealing
and well stocked. New videos and
learning resources helped improve
employees’ product knowledge, enabling
them to provide expert advice on the
latest food innovations and trends.
Through our ongoing supply chain
improvements and the implementation of
our new space, range and display system,
we further improved availability and we
remain on track to deliver our 5%
improvement target by 2013/14.
Innovation and choice
M&S is recognised for pioneering product
innovation and this year we continued to
lead the way. We offered customers even
more choice through constant innovation
and first-to-market products, launching
1,900 new lines and refreshing 25% of our
entire range.
We strengthened our position as market
leader in international recipe dishes, with
the launch of España – the high street’s
first range of contemporary Spanish
cuisine, which uses authentic ingredients
such as Oloroso sherry and pimento de le
vera. We also introduced a new Modern
Asian range; inspired by the continent’s
aromatic, vibrant flavours. Our most
popular dish is the Wok Beef Noodles
selling over 210,000 items since launch.
Our product developers responded to the
latest restaurant trends, with a number of
high street firsts. We received industry
recognition for our Runny Scotch Egg;
developed using the complex sous vide
technique, it contains a perfect runny
centre. Customers loved our twist on this
classic British favourite, with over 165,000
sold to date. Capitalising on the Dim Sum
trend, we introduced delicious Chinese
steamed pork buns in time for Chinese
New Year celebrations in February. Made
with succulent, slow cooked shredded
pork in hoisin and soy sauce, we sold
over 20,000 packs.
Trusted for the most important
occasions
When it matters most, customers turn to
us for something truly special. Our
reputation for innovation, coupled with
exceptional quality, means M&S has
become a destination of choice for
customers looking to make celebrations
more memorable. This helped us deliver a
record Christmas, with M&S
outperforming the market in the two key
festive trading weeks, followed by our
best ever Easter week.
We also provided customers with
inspirational gifts and treats to mark
special occasions. We sold over
1.5 million Valentine’s Day chocolates,
up 10% and sold over two million
bouquets and plants in the week before
Mothers Day, up 6.5%. Our online flower
ordering business continues to grow, as
customers enjoyed the convenience of
gifting on the go.
We trace it so you can trust it
Good food starts with good
ingredients – and the best ingredients
come from the best farmers. Every
farm supplying us with fresh meat is
known to us and independently
audited to ensure the highest
standards. The tests on our products
told us what we already knew: where
it says so on the packaging, our
products contain 100% beef.
Cook with M&S
We relaunched our Cook and Stir Fry
ranges this year and stocked more
key ingredients to help customers
cook from scratch. Designed to take
the hard work out of preparing a
delicious home-cooked meal, we
introduced our new stir-fry shop,
featuring a wide variety of fresh and
exciting ingredients. We have sold over
500,000 items since launch.
Discover more online
Looking ahead