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| Plan A integral to the rebirth of Marks & Spencer, says CEO | Plan A integral to the rebirth of Marks & Spencer, says CEO |
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| Marks & Spencer's "Plan A" green strategy was so-named because there was no Plan B, according to the retailer's then chief executive, Stuart Rose, in 2007. The current boss, Marc Bolland, must now persuade anxious shareholders that the company should not change its approach, or its leader. | Marks & Spencer's "Plan A" green strategy was so-named because there was no Plan B, according to the retailer's then chief executive, Stuart Rose, in 2007. The current boss, Marc Bolland, must now persuade anxious shareholders that the company should not change its approach, or its leader. |
| Bolland faces a tough reception at the company's annual general meeting on Tuesday. Investors who gather at Wembley Stadium are expected to hear that fashion sales declined for the eighth quarter in a row. The steady decline, despite Bolland's attempt to woo back shoppers, threatens to undermine his case to investors that he can revive the business. | Bolland faces a tough reception at the company's annual general meeting on Tuesday. Investors who gather at Wembley Stadium are expected to hear that fashion sales declined for the eighth quarter in a row. The steady decline, despite Bolland's attempt to woo back shoppers, threatens to undermine his case to investors that he can revive the business. |
| He views the Plan A social and environmental plan, with its emphasis on cutting waste, saving energy, trading fairly and animal welfare, as integral to the rebirth of M&S. Ask him if he'll still be seeing it through in a year's time and the tone turns from green to red. The former Morrisons boss does not conceal his irritation, and points to recent public backing from chairman Robert Swannell, despite presiding over two successive years of declining profits. | He views the Plan A social and environmental plan, with its emphasis on cutting waste, saving energy, trading fairly and animal welfare, as integral to the rebirth of M&S. Ask him if he'll still be seeing it through in a year's time and the tone turns from green to red. The former Morrisons boss does not conceal his irritation, and points to recent public backing from chairman Robert Swannell, despite presiding over two successive years of declining profits. |
| Ask him if he thinks he's the got the right strategy for M&S – the crucial autumn/winter clothes collection is said to have impressed investors — and Bolland is adamant: "I've been confident from day one and now I'm very confident in the strategy. In the long-term, for this company to stay in the hearts and minds of customers, shareholders and all stakeholders, the brand needs to be built around trust and Plan A builds strongly around trust." | Ask him if he thinks he's the got the right strategy for M&S – the crucial autumn/winter clothes collection is said to have impressed investors — and Bolland is adamant: "I've been confident from day one and now I'm very confident in the strategy. In the long-term, for this company to stay in the hearts and minds of customers, shareholders and all stakeholders, the brand needs to be built around trust and Plan A builds strongly around trust." |
| Analysts predict that M&S will report that fashion and homeware sales fell by 1.5%, on a like-for-like basis, in the last three months. That could fuel criticism of the company's performance, with lingerie director Janie Schaffer having quit after just three months in April. Food sales, though, are expected to have risen by 1.6%. | Analysts predict that M&S will report that fashion and homeware sales fell by 1.5%, on a like-for-like basis, in the last three months. That could fuel criticism of the company's performance, with lingerie director Janie Schaffer having quit after just three months in April. Food sales, though, are expected to have risen by 1.6%. |
| According to Bolland, long-term investors are interested in a sustainable business fuelled by the values behind Plan A. Shoppers, assailed in recent months by headlines over the source of their products, like the idea that they don't have to worry if their strawberries are ethically sourced or that workers are treated well in factories supplying M&S. | According to Bolland, long-term investors are interested in a sustainable business fuelled by the values behind Plan A. Shoppers, assailed in recent months by headlines over the source of their products, like the idea that they don't have to worry if their strawberries are ethically sourced or that workers are treated well in factories supplying M&S. |
| Those issues of food and labour sourcing have had a major impact on the news headlines this year. M&S, however, was untouched by the horsemeat scandal that hit Tesco among others, and also had no links to the Rana Plaza factory in Bangladesh where more than 1,000 workers died in April when the building collapsed. Primark was among the clothing brands that had to defend their manufacturing strategies after the tragedy when it emerged that dozens of western retailers used the Dhaka complex. Twenty UK retailers, including M&S, attended a government summit last week to discuss how to prevent a repeat of the disaster. | Those issues of food and labour sourcing have had a major impact on the news headlines this year. M&S, however, was untouched by the horsemeat scandal that hit Tesco among others, and also had no links to the Rana Plaza factory in Bangladesh where more than 1,000 workers died in April when the building collapsed. Primark was among the clothing brands that had to defend their manufacturing strategies after the tragedy when it emerged that dozens of western retailers used the Dhaka complex. Twenty UK retailers, including M&S, attended a government summit last week to discuss how to prevent a repeat of the disaster. |
| Bolland suggests that M&S has avoided these disasters because of the strong sourcing policies of Plan A, which was billed as costing £200m over five years when it launched in January 2007 with typical Rose razzmatazz, but has since saved the company £320m. | Bolland suggests that M&S has avoided these disasters because of the strong sourcing policies of Plan A, which was billed as costing £200m over five years when it launched in January 2007 with typical Rose razzmatazz, but has since saved the company £320m. |
| He says M&S's food business has been doing well recently partly because shoppers trust the way the retailer sources food compared to rivals who discovered there was horsemeat in their beef products, and that those ethical values can also play a part in turning clothing sales around. | He says M&S's food business has been doing well recently partly because shoppers trust the way the retailer sources food compared to rivals who discovered there was horsemeat in their beef products, and that those ethical values can also play a part in turning clothing sales around. |
| "Plan A has given an additional strength and trust in our business and brands and helped us improve and protect the provenance of our sourcing," he says.With that in mind, Bolland insists that the Plan A targets are not negotiable, despite tough economic times in which some shoppers give social and environmental issues a lower priority. "In the economic times of today, interest in sustainability is under pressure and it shouldn't be because it is more critical now," Bolland says.His response to shoppers' changing priorities is more customer and community engagement. | "Plan A has given an additional strength and trust in our business and brands and helped us improve and protect the provenance of our sourcing," he says.With that in mind, Bolland insists that the Plan A targets are not negotiable, despite tough economic times in which some shoppers give social and environmental issues a lower priority. "In the economic times of today, interest in sustainability is under pressure and it shouldn't be because it is more critical now," Bolland says.His response to shoppers' changing priorities is more customer and community engagement. |
| M&S will be offering 1,400 unemployed young people one-month work placements this year in a scheme backed by The Prince's Trust. At last month's Plan A conference for 1,200 M&S stakeholders, including manufacturers, charities and pressure groups, Bolland called on the retailer's suppliers to offer similar placements equivalent to 2% of their workforce, the same proportion as M&S. He has also sought pledges from rival FTSE 100 companies, and believes at least 10 more will get involved in the bid to help tackle high youth unemployment. | M&S will be offering 1,400 unemployed young people one-month work placements this year in a scheme backed by The Prince's Trust. At last month's Plan A conference for 1,200 M&S stakeholders, including manufacturers, charities and pressure groups, Bolland called on the retailer's suppliers to offer similar placements equivalent to 2% of their workforce, the same proportion as M&S. He has also sought pledges from rival FTSE 100 companies, and believes at least 10 more will get involved in the bid to help tackle high youth unemployment. |
| Bolland also wants to raise customer awareness about the way M&S sources goods. Within three years, he wants customers to be able to use product codes or the company's website to see exactly where individual items have been made. He said transparency was important for all retailers in the days of smartphones, which enable shoppers to quickly gain access to information on working conditions and farming methods around the world. | Bolland also wants to raise customer awareness about the way M&S sources goods. Within three years, he wants customers to be able to use product codes or the company's website to see exactly where individual items have been made. He said transparency was important for all retailers in the days of smartphones, which enable shoppers to quickly gain access to information on working conditions and farming methods around the world. |
| "If they want to find out they will find out in the future and they will know all of our factories because it is in reach," he said. | "If they want to find out they will find out in the future and they will know all of our factories because it is in reach," he said. |
| Winning shoppers over with such ideas could be important as gains from Plan A may be harder to find in tough economic times. | Winning shoppers over with such ideas could be important as gains from Plan A may be harder to find in tough economic times. |
| M&S saved £135m through Plan A in the past year, up from £105m last year, partly by installing low-energy lighting and changing the kind of refrigerators it used, which also helped cut overall carbon emissions by 0.5% year-on-year and 23% since 2006. | M&S saved £135m through Plan A in the past year, up from £105m last year, partly by installing low-energy lighting and changing the kind of refrigerators it used, which also helped cut overall carbon emissions by 0.5% year-on-year and 23% since 2006. |
| M&S has also cut waste by 28%, water use by 27% and trained and educated more than 240,000 workers in its supply chain. | M&S has also cut waste by 28%, water use by 27% and trained and educated more than 240,000 workers in its supply chain. |
| But M&S struggled to meet some of its targets as shoppers tighten their belts. | But M&S struggled to meet some of its targets as shoppers tighten their belts. |
| The company has been forced to set aside efforts to convert key clothing ranges to Fairtrade cotton, triple sales of organic food and convert pork to freerange sources amid indifference from shoppers and problems with supply. | The company has been forced to set aside efforts to convert key clothing ranges to Fairtrade cotton, triple sales of organic food and convert pork to freerange sources amid indifference from shoppers and problems with supply. |
| Meanwhile, use of disposable plastic bags was up year on year, and the company's How We Do Business report published last month also reveals that M&S was behind the industry average in cutting down food packaging. | Meanwhile, use of disposable plastic bags was up year on year, and the company's How We Do Business report published last month also reveals that M&S was behind the industry average in cutting down food packaging. |
| A bid to collect 20m items of clothing a year for recycling by 2015 under its Shwopping scheme fronted by actress Joanna Lumley also looks tough to meet. In the past year 3.8m items were collected against 3.3m in the year before, as shoppers' habits proved hard to change. | A bid to collect 20m items of clothing a year for recycling by 2015 under its Shwopping scheme fronted by actress Joanna Lumley also looks tough to meet. In the past year 3.8m items were collected against 3.3m in the year before, as shoppers' habits proved hard to change. |
| Still, Bolland says M&S continues to move forward, switching focus from Fairtrade cotton, for example, to sourcing more sustainable textiles through projects such as the Better Cotton Initiative which uses less water and pesticides than fibre grown in the traditional way. He argues that sticking to its ethical targets means that M&S has strong backing from its staff even as the company faces external criticism over its clothing sales. | Still, Bolland says M&S continues to move forward, switching focus from Fairtrade cotton, for example, to sourcing more sustainable textiles through projects such as the Better Cotton Initiative which uses less water and pesticides than fibre grown in the traditional way. He argues that sticking to its ethical targets means that M&S has strong backing from its staff even as the company faces external criticism over its clothing sales. |
| City analysts believe the performance of M&S's autumn/winter collection will be crucial for the company. "The fashion writers seem to have a broadly positive narrative on the new ranges but the key measure will be that of 'Ms & Mrs Britain'," said Clive Black of Shore Capital. | City analysts believe the performance of M&S's autumn/winter collection will be crucial for the company. "The fashion writers seem to have a broadly positive narrative on the new ranges but the key measure will be that of 'Ms & Mrs Britain'," said Clive Black of Shore Capital. |
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