M&S STRATEGY FOCUS: M&S launches store and product overhaul
Drive to address ‘key weaknesses’ in business
Marks & Spencer is overhauling its stores and core product ranges as chief executive Stuart Rose seeks to overcome ‘key weaknesses’ in the business.
Setting out its strategy, M&S said the company has been too inward looking, allowing competitors to encroach on its heartland. Stores are too cluttered, with too many product lines, and the core womenswear offer has not kept pace with the market.
The company said Rose has reviewed key product areas and has been closely involved with the clothing buying teams. For autumn, ranges have been edited and some gaps filled, but the company stressed the full impact of changes will not become evident until spring 2005.
Underpinned by the new ‘Your M&S’ campaign, aimed at increasing existing customer spend and in the longer re-engaging with occasional and younger customers, “improving the in-store customer experience is a key priority using co-ordinated advertising, improved windows, layouts and point of sale material. This approach has contributed to a strong performance in our new stores in Swansea and Speke”, said the company.
In clothing the plan is to re-focus on offering high quality, stylish ranges to core customers. Prices will be sharpened, with clear emphasis on the ‘good, better, best’ pricing, and priority given to filling gaps in ranges.
In home, there will be a shift of emphasis back to ‘good value product’ in the core strengths of bath, bed, cookware, kitchenware and glass. The food business is seen as having become overcomplicated. So far, 500 food lines have been cut and M&S will concentrate on what it sees as the core strengths of quality and real innovation.
