Marks & Spencer's Home sales have "underperformed" over the last year, yet steps are being taken to rectify the retailer's direction, according to its final year results statement.
These include re-establishing style authority, with a focus on product, quality and fit, restoring the brand's price position, lowering prices and a reduced promotional stance, and offering an enhanced customer experience, with better availability and investment in store staffing.
New chief executive Steve Rowe comments: “M&S is a great business with a strong customer base and loyal employees and we have much to be proud of. We also know that we have lots of opportunities to improve and be better for our customers, our employees and our shareholders. We are putting customers right at the heart of our business.
“Our results last year were mixed. We continued to outperform on Food but we underperformed on Clothing & Home sales. This is not satisfactory and today we are outlining our initial plans to address the issues and to position Marks & Spencer to deliver profitable sales growth.
“We are clear on the actions needed to recover and grow Clothing & Home, which is our top priority; to continue to grow our Food business; and to focus on driving profitability. We are investing to re-establish our price position by sharpening prices and to enhance service by putting more employees into our stores.
“These actions, combined with the difficult trading conditions, will have an adverse effect on profit in the short term. We are, however, confident that our commitment to delivering the right product, price and service will help return Clothing & Home sales to growth. This, together with continued momentum in Food, will provide us with a solid base from which to build a long term sustainable business.”
International trading conditions remain difficult, operating profit down 39.6% to £55.8m. Additional strategic questions, including international performance, the UK store estate and organisation, will be addressed in the autumn.
