This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.theguardian.com/business/2016/apr/07/marks-and-spencer-steve-rowe-clothing-sales-fall
The article has changed 5 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| New M&S boss brands latest clothing sales fall 'unsatisfactory' | New M&S boss brands latest clothing sales fall 'unsatisfactory' |
| (35 minutes later) | |
| Marks & Spencer’s new boss Steve Rowe said the performance of the retailer’s core clothing division was “unsatisfactory” as he unveiled yet another fall in sales. | Marks & Spencer’s new boss Steve Rowe said the performance of the retailer’s core clothing division was “unsatisfactory” as he unveiled yet another fall in sales. |
| Clothing sales have grown in only one quarter over the past five years and, in his first presentation to the City as chief executive, Rowe said improving the business was his “No 1 priority”. He is reviewing M&S’s stable of clothing brands which includes Per Una, Indigo, Limited and Autograph, and has already taken action by cutting some prices to bring the retailer into line with high street rivals. | |
| Related: From Saturday boy to big boss: M&S chief finds lessons in hometown store | Related: From Saturday boy to big boss: M&S chief finds lessons in hometown store |
| “Our priority is fixing clothing,” said Rowe, who reiterated that he was “personally committed to working with the team to get this right”. | |
| “The [clothing] team has sat down and given itself a number of exam questions,” he said. “We’ve not been as stylish as we need to be, not had the availability and need to make sure we have the right product at the right price.” | “The [clothing] team has sat down and given itself a number of exam questions,” he said. “We’ve not been as stylish as we need to be, not had the availability and need to make sure we have the right product at the right price.” |
| Rowe successfully ran the chain’s food business and was handed the role of head of general merchandise last July. | Rowe successfully ran the chain’s food business and was handed the role of head of general merchandise last July. |
| Like-for-like clothing and home sales were down by 2.7% in the 13 weeks to 26 March, although this was better than the decline of more than 3% expected by analysts. On the food side, although sales were flat M&S said the division outperformed the market and expanded its market share to 4.3%, after opening 80 stores and launching 400 new lines. | Like-for-like clothing and home sales were down by 2.7% in the 13 weeks to 26 March, although this was better than the decline of more than 3% expected by analysts. On the food side, although sales were flat M&S said the division outperformed the market and expanded its market share to 4.3%, after opening 80 stores and launching 400 new lines. |
| Rowe revealed he had cut the price of 300 women and men’s spring clothing lines by 10-15%. Examples included black jeggings reduced by £2 to £17.50 and a men’s white T-shirt reduced from £7.50 to £6. The average price of its main spring womenswear collection is £35, down from £40 a year ago, he added. | |
| M&S also ran 40% fewer clothing promotions in stores and online during the quarter, helping to boost profit margins which will now be at the top end of City expectations. Rowe said the retailer was working on improving its ranges and design. He said sales in its Autograph collection were up 10%. Its spring/summer ranges also launched with a lot more stock than last year. | M&S also ran 40% fewer clothing promotions in stores and online during the quarter, helping to boost profit margins which will now be at the top end of City expectations. Rowe said the retailer was working on improving its ranges and design. He said sales in its Autograph collection were up 10%. Its spring/summer ranges also launched with a lot more stock than last year. |
| Shore Capital analyst Clive Black described Rowe as a “force for good”. “Fixing M&S’s general merchandise conundrum, notably the sustained brand corrosion, will not be an easy or quick process,” he said. | |
| “The solutions revolve around product, merchandising, marketing and price to the extent that M&S can engineer positive change that delivers sustainable same-store and then trading profit growth. | “The solutions revolve around product, merchandising, marketing and price to the extent that M&S can engineer positive change that delivers sustainable same-store and then trading profit growth. |
| “We struggle to see this process of change involving a mere Elastoplast,” warned Black. “So some surgery may feature when the time comes to update the market on M&S’ next chapter for development.” | “We struggle to see this process of change involving a mere Elastoplast,” warned Black. “So some surgery may feature when the time comes to update the market on M&S’ next chapter for development.” |
| Rowe – whose father was a director of M&S until 2000 - will give a more detailed insight into his turnaround plans at its full-year results next month but he has already given some early clues to his management style. | Rowe – whose father was a director of M&S until 2000 - will give a more detailed insight into his turnaround plans at its full-year results next month but he has already given some early clues to his management style. |
| He told staff that he is a “big believer in keeping things simple”. He said: “One of the things that I have learned during my time at M&S is that we have a tendency to overcomplicate things. Doing things simply means we serve customers better, manage costs, and work more efficiently.” |