Marks and Spencer 2016 Annual Report Download - page 22

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20
MARKS AND SPENCER GROUP PLC
STRATEGIC REPORT
UK LFL SALES GROWTH
+0.2%
Defi nition Sales growth from those stores
that have been open for 12 months.
Performance We outperformed the
market and grew our market share to 4.3%.
UK FOOD SPACE GROWTH
+3.9%
Defi nition Increase in weighted average
Food selling space.
Performance We opened 25 owned
Simply Food stores, 50 new franchise
locations and seven new full line stores.
UK LFL SALES GROWTH
-2.9%
Defi nition Sales growth from those stores
that have been open for 12 months.
Performance Although we lowered
the sales decline in Clothing & Home
in the last quarter, our sales performance
was unsatisfactory.
UK REVENUE
£5.4bn+3.6%
2014/15: £5.2bn
Defi nition UK Food sales including
our owned business and sales to our
UK franchisees.
Performance Our strategy to be
special, new and di erent continued
to set us apart in a very challenging
and defl ationary market.
SALES
REVENUE
GROSS MARGIN/
OPERATING PROFIT
SALES GROWTH/
SPACE GROWTH/
ONLINE VISITS
UK REVENUE
£3.9bn-2.2%
2014/15: £4.0bn
Defi nition UK Clothing & Home sales
for our owned business.
Performance Trading conditions through
the year remained challenging, with
unseasonal weather resulting in high levels
of promotional activity. Nevertheless,
our performance highlighted a number
of challenges with our products and
execution, and we have announced our
plan to recover and grow sales.
UK GROSS MARGIN
32.8%0bps
Defi nition Gross margin is the percentage
of revenue retained after costs for
producing and transporting goods.
Performance Persistent defl ation from
price investment and an increase in waste
costs put pressure on margin. However,
these were mitigated through benefi ts
realised from volume growth and
ongoing operational e ciencies.
UK GROSS MARGIN
55.1%+245bps
Defi nition Gross margin is the percentage
of revenue retained after costs for
producing and transporting goods.
Performance Strong improvement in
gross margin was driven by improvement
in the buying margin as we continue to
make progress in our sourcing initiatives
and implement a more fl exible and direct
sourcing operation.
OBJECTIVE KPI
Driving
growth
Reaching
customers
Improving
profi tability
CLOTHING & HOME (52 WEEKS)FOOD (52 WEEKS)
STRATEGIC OBJECTIVES
KEY PERFORMANCE INDICATORS
CONTINUED
Read about our Strategic Update on p06-08 Read more on Remuneration on p58
Read about our Resources & Relationships on p10-13