Marks and Spencer

Marks and Spencer

Marks and Spencer

Introduction

Marks and Spencer Group (M&S) is a leading retailer of clothing, foods and home ware in the UK. The company recorded revenues of £9,022 million (approximately $18,113 million) during the financial year (FY) ended March 2008, an increase of 5.1% over 2007. The operating profit of the company was £1,211.3 million (approximately $2,431.9 million) during FY2008, an increase of 15.8% over 2007. The net profit was £821.7 million (approximately $1,649.7 million) in FY2008, an increase of 24.5% over 2007.

Marks and Spencer Group plc (M&S) is the holding company of the Marks & Spencer Group of companies. M&S is a UK retailer of clothing, foods and home ware. As of September 2008, the group operated 665 stores in the UK. M&S's international franchisees operate over 291 stores in over 40 territories. Though the company primarily reports in terms of geographic segments (UK and international), its operations can be categorized under two divisions: food and general merchandise including clothing and home ware. The food division concentrates on four main areas: fresh, natural, healthy food; special celebration products; authentic ready meal ranges and exceptional everyday food such as “Oakham” chicken. It operates a chain of 205 franchised ”Simply Food” stores in Connect forecourts, motorway service stations, railway stations and airports. The clothing section offers women's wear, men's wear, lingerie, children's wear and footwear. The division sources raw materials from offices in Hong Kong, India, Bangladesh, Sri Lanka and Turkey. Some of the prominent brands offered by this division include: Autograph, Limited Collection, Collezione, Blue Harbour, Girls Boutique, Per Una, Ceriso, Adored, Truly you and Body. The home division offers home ware and home accessories; kitchen and tableware; lighting; and furniture products. In addition to regular stores, the division offers catalogue and online services. The company offers financial services through M&S Money. Its range of financial products includes credit cards, car, home, travel, pet and wedding insurance, as well as cash ISA and unit trusts like the M&S Ethical Fund. M&S offers its products and services online and through M&S Catalogue, its flagship stores, high street stores, retail park stores, M&S outlets, Simply Food stores and Simply Food franchised stores.

Major Issues

The company witnessed lowering sales in UK, in the first two quarters of FY2009. For this period, the company's UK sales declined 1.1%. And also the company recorded decrease of 5.7%, 6.2% and 5.3% like-for-like ...