Protecting the magic and modernising the rest in Food
UK Food revenue declined 0.6%, with like-for-like revenue down 2.3%. The M&S strategy to protect the magic is based on unique quality, freshness, and innovation credentials whilst reshaping store estate, infrastructure, operating systems, cost management and supply relationships. The Ocado joint venture combined with the Food transformation plan opens up the possibility of substantially increasing M&S grocery market share in the medium term.
Phase 1 fixing the basics:
- Addressing the basic operating weaknesses in the business and broadening our appeal to attract a wider range of customers and be relevant to more shopping occasions.
- Progress has been made in restoring trust in our value at relatively little cost to margin.
- Halved dependence on the short-term promotions and complex multi-buy offers - enabled to invest in everyday prices including reductions in over 400 lines.
In the current year a series of work areas have been designed to simplify supply relationships, reduce costs and increase the pace of innovation. Similarly, an improved working relationship with GIST, their logistics partner, has led to modernising and better integrating the supply chain.
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Steve Rowe, Marks & Spencer CEO said: “We are deep into the first phase of our transformation programme and continue to make good progress restoring the basics and fixing many of the legacy issues we face. As I have said, at this stage we are judging ourselves as much by the pace of change as by the trading outcomes and change will accelerate in the year ahead. “Whilst there are green shoots, we have not been consistent in our delivery in a number of areas of the business. M&S is changing faster than at any time in my career - substantial changes across the business to our processes, ranges and operations and this has constrained this year’s performance, particularly in Clothing & Home. However, we remain on track with our transformation and are now well on the road to making M&S special again.”
Find out more about NFU Food Chain’s work with retailers here