M&S Corporate Strategy
In view of a difficult trading environment and falling profits, M&S has conducted a review of its business, putting together a strategy to get it through the downturn.
The strategy encompasses objectives including:
- To increase pace of change and operational execution
- To accelerate multi-channel development
- To drive developments in international
- To re-focus brand communication
To implement these initiatives the company launched a change programme under the slogan ‘2020 – Doing the right thing,’ headed up by Ian Dyson. It consists of an executive team including John Dixon, Kate Bostock, Steve Rowe and Tanith Dodge.
Simply Food
With regards to its Simply Food stores, M&S has announced plans to close a number of unprofitable sites as part of its business review, which aims to put the retailer in good shape to weather the economic downturn.
Property strategy
In November 2006, M&S announced a far-reaching review of its property strategy over the next five years. Its five priorities are: Enhance its major city centre stores, mainly through expansion and major redevelopment; Find more out-of-town stores of around 10,000 sq m and expand its space where it already trades through mezzanines and extensions; Open more stores of between 4-6,000 sq m on retail parks; Examine its portfolio of high street stores to make sure they are the right size and in the right place. This may involve some closures, but will mainly be relocations to better sites that suit its customers. For 2009/10 new footage in the company’s UK business will add 3% to total space.
International
International is to be a key growth area for M&S with planned new footage in the chain’s international business to add 20% to total space in 2009/10. The move to ramp up its international business comes as the chain tries to limit its dependence on the flailing UK economy. Notable international expansion is set to take place in India with 10 to 15 stores set to open over the next two years and China. M&S remains on track to meet their objective of increasing their international business to 15% to 20% of group revenues by 2012.
Modernisation
In addition to new space growth, M&S is progressing through a modernisation programme. Once it has completed its refurbishment programme it is working on a new store blueprint in collaboration with design agency Fitch. Codenamed Store of the Future, the company is looking at new formats both for its food and non-food outlets.
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