Marks and Spencer Overview
An overview of Marks & Spencer plc
Marks & Spencer (M&S) is a leading British retailer, with over 895 stores in over 41 countries around the world. As of 2009, 600 stores currently located throughout the United Kingdom along with 295 stores planted internationally (M&S 2009). According to Deloitte (2009) M&S is the largest clothing retailer in the United Kingdom, as well as being an exclusive food retailer and as of 2009, the 43rd largest retailer in the world. The large majority of its domestic stores sell both clothing and food, and since the turn of the century it has started expanding into other ranges such as homewares, furniture and technology.
Figure 1 illustrates M&S’s overall sales in millions from the years 2005 – 2009. The graph trend shows a gradual increase in turnover every year. By the end of 2009 M&S revenue reaches 9,062.1 million compared to 2005 revenue of 7,490.5 million. A difference of £1571.6
Data taken from M&S 2009.
Figure 1: M&S Sales (2005-2009)
Figure 2 represents the operating profit of M&S. There is a steady rise in the growth of sales from 2005 to 2008. However in the year 2009 there is a decline in the growth of sales. This is fairly due to the economic recession resulting in less economical activity. M&S prices would have risen resulting in a decline in demand for their products and services.
Data taken from M&S 2009.
Figure 2: M&S Sales growth (2005-2009)
Figure 3 displays the two primary categories of business for M&S. Food as a whole and all other products falling under house hold products. Both areas of business are equally important as they hold a near perfect share of the business.
Data taken from M&S 2009.
51%
49%
Figure 3: M&S main business areas
Business strengths and weaknesses:
M&S has grown over the 21st and it is arguable that the company has moved from strength to strength. M&S are strong in many dynamics
Marks & Spencer (M&S) is a leading British retailer, with over 895 stores in over 41 countries around the world. As of 2009, 600 stores currently located throughout the United Kingdom along with 295 stores planted internationally (M&S 2009). According to Deloitte (2009) M&S is the largest clothing retailer in the United Kingdom, as well as being an exclusive food retailer and as of 2009, the 43rd largest retailer in the world. The large majority of its domestic stores sell both clothing and food, and since the turn of the century it has started expanding into other ranges such as homewares, furniture and technology.
Figure 1 illustrates M&S’s overall sales in millions from the years 2005 – 2009. The graph trend shows a gradual increase in turnover every year. By the end of 2009 M&S revenue reaches 9,062.1 million compared to 2005 revenue of 7,490.5 million. A difference of £1571.6
Data taken from M&S 2009.
Figure 1: M&S Sales (2005-2009)
Figure 2 represents the operating profit of M&S. There is a steady rise in the growth of sales from 2005 to 2008. However in the year 2009 there is a decline in the growth of sales. This is fairly due to the economic recession resulting in less economical activity. M&S prices would have risen resulting in a decline in demand for their products and services.
Data taken from M&S 2009.
Figure 2: M&S Sales growth (2005-2009)
Figure 3 displays the two primary categories of business for M&S. Food as a whole and all other products falling under house hold products. Both areas of business are equally important as they hold a near perfect share of the business.
Data taken from M&S 2009.
51%
49%
Figure 3: M&S main business areas
Business strengths and weaknesses:
M&S has grown over the 21st and it is arguable that the company has moved from strength to strength. M&S are strong in many dynamics
References: M&S (2009) About us. Available at http://corporate.marksandspencer.com/aboutus/where/uk_stores. (Accessed: 14th December 2009) Deloitte (2009) Wal-Mart remains largest global retailer, according to Deloitte survey M&S (2009) Plan A. Available at: http://plana.marksandspencer.com/ (Accessed: 12th December 2009) A BBC (2006) M&S set to launch Fairtrade range. Available at: http://news.bbc.co.uk/1/hi/business/4660410.stm (Accessed: 11th December 2009) War on Want (2007)Growing Pains J.Smith (2004) Brighton Activists deface Marks and Spencers store. Available at: http://www.indymedia.org.uk/en/2004/10/299453.html?c=on#c103995 (Accessed: 12th December 2009) M&S (2009) Indigo Collection BBC (2005) M&S sales rise but Davies resigns. Available at: http://news.bbc.co.uk/1/hi/business/4329412.stm (Accessed: 12th December 2009) M&S (2009) TVs & Accessories : Technology : Marks & Spencer M&S (2009) Reports and Publication. Available at: http://corporate.marksandspencer.com/page.aspx?pointerid=ad6248969dcf4934b8c4a57934935baf (Accessed: 9th December 2009)