Marks and Spencer 2013 Annual Report Download - page 7

Overview Marks and Spencer Group plc
Overview Strategic review Financial review Governance Financial statements and other information
Annual report and financial statements 2013 05
CUSTOMER INSIGHT
“I want every purchase
I make to feel worthwhile
and really make a
difference to me.”
How we have responded
Area Impact Response
Clothing
The clothing market remained flat this
year and was impacted by unseasonal
weather. Limited consumer budgets,
meant womenswear in particular
continued to be extremely competitive
and very promotionally driven.
Many consumers
deferred their
shopping trips,
deciding to ‘make
do’ with their
existing wardrobe,
unless they were
presented with
compelling
reasons to buy.
We established eye-catching ‘trend
zones’ aligned to our advertising
campaigns in stores, giving
customers ideas on outfit building
and enabling them to clearly identify
the right products for them.
Home
The static housing market meant sales
of big-ticket items such as furniture
remained depressed. Consumers
increasingly used stores
as ‘try before you buy’
showrooms to make
purchasing decisions,
but used online methods
to purchase – avoiding
additional distractions.
With continued emphasis on family and
socialising at home, customers looked
for inspiration and affordable style, as
their focus remained on smaller-scale
projects to refresh and update
their homes.
Our new inspirational roomset layout
delivered a real wow factor in stores,
showcasing statement pieces of
furniture, homeware and accessories
from our collections. We also featured
stylish room ideas on our website,
Home catalogue and on the new M&S
Home iPad app. Furniture sales
increased as a result.
Food
Driven by commodity and fuel price
increases, inflation continued to be
the principal factor affecting the food
market. Competition amongst retailers
remained intense, with high levels
of promotional activity. In the wake
of the supply chain issues, trust and
traceability became a priority
for customers.
Customers continued to demand good
value food, but also expressed renewed
commitment to healthy eating,
particularly in the New Year.
They looked for a stress-free
shopping experience,
with clear promotions
and quality they
could trust.
Our Simply M&S range caters for
customers seeking affordable quality
and we continued to extend our
Health offer, with a brand new
range – Delicious and Nutritious.
Our reputation for exceptional food
provenance served us well this year
and we reminded our customers
of our longstanding relationships
with British farmers who share our
values and commitments.
Brand
In a challenging market, dependable
established brands continued to benefit.
The well publicised issues in the food
supply chain further fuelled
a migration towards quality,
trusted brands.
With a limited budget available –
consumers turned to brands they trusted
to deliver genuine quality. They wanted
every purchase to make a difference to
their lives.
Our marketing activity highlighted the
quality and innovation that sets M&S
apart – both in Food and Clothing. We
used a broader variety of models so
customers could see how the latest
styles would make a difference to their
wardrobes. Our food campaigns
showed how M&S Food can
make ordinary occasions special.
Multi-channel
This year online and mobile channels
continued to play an increasingly
important role in influencing shoppers
and determining their purchasing
decisions.
Customers were
looking for integrated,
effortless shopping
experiences that
allowed them to
make well-informed
choices and buy
in the way that
suits them best.
This year we better integrated our
shopping channels – bringing the
latest digital technology into our
stores. We launched our first
transactional iPhone app and added
new browse and order points to our
stores. We rolled out over 1,500 iPads
to our employees – helping to offer a
more personalised service.
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