Marks and Spencer

A Progressive Digital Media business
COMPANY PROFILE
Marks and Spencer

Group plc
REFERENCE CODE: DFE67A38-E021-448F-BC58-3944E618713F

PUBLICATION DATE: 29 Apr 2016
www.marketline.com
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Marks and Spencer Group plc

TABLE OF CONTENTS
TABLE OF CONTENTS
Company Overview ........................................................................................................3
Key Facts ......................................................................................................................... 3
Business Description .....................................................................................................4
History ............................................................................................................................. 5
Key Employees ...............................................................................................................8
Key Employee Biographies .........................................................................................10
Major Products & Services ..........................................................................................17
Revenue Analysis .........................................................................................................19
SWOT Analysis .............................................................................................................21
Top Competitors ...........................................................................................................26
Company View ..............................................................................................................27
Locations And Subsidiaries ........................................................................................31

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Company Overview
Company Overview
COMPANY OVERVIEW
Marks and Spencer Group plc (M&S or 'the company') is one of the leading retailers of general
merchandise and food in the UK. The company also operates in Europe, the Middle East, and Asia. It is
headquartered in London, the UK and had 83,069 employees, on an average, as of March 28, 2015.
The company recorded revenues of 10,311.4 million ($16,643.6 million) in the financial year ended
March 2015 (FY2015), registering a marginal increase compared to FY2014. The operating profit of the
company was 701.3 million ($1,132 million) in FY2015, an increase of 1% over FY2014. The net profit of
the company was 486.5 million ($785.3 million) in FY2015, a decrease of 7.3% compared to FY2014.
Key Facts
KEY FACTS
Head Office

Waterside House
35 North Wharf Road
London W2 1NW
GBR
Phone
44 20 7935 4422
Fax
Web Address
http://www.marksandspencer.com/
Revenue /
10,311.4
turnover (GBP
Mn)
Revenue (USD 16,643.6
Mn)
Financial Year March
End
Employees
83,069
London Stock MKS

Exchange
Ticker

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Business Description
Business Description
BUSINESS DESCRIPTION
M&S is the holding company of the Marks & Spencer Group of companies. The company is one of the
UK's leading retailers. M&S offers clothing and home products, as well as food, sourced from various
suppliers globally. It operates through both wholly-owned stores and franchise stores. As of FY2015, the
company operated 852 stores in the UK, and 480 international stores in 59 territories across Europe, the
Middle East and Asia.
The company operates through two segments based on its geographies, namely the UK and
international. The UK segment consists of the UK retail business and UK franchise operations. The
international segment includes operations of Marks & Spencer owned businesses in the Republic of
Ireland, Europe and Asia and its international franchise operations. Although the company reports its
revenues in terms of geographic segments, its operations can be categorized under two divisions: food
and general merchandise.
The food division offers a wide range of food and beverages including sandwiches, cakes, fresh fruits,
salads, prepared meals, wine, beer and champagnes. The company operates a chain of 198 Simply Food
owned stores and 306 Simply Food franchise stores in high streets, motorway service stations, railway
stations and airports in the UK.
The general merchandise division offers clothing, including women's wear, beauty products, men's wear,
lingerie, children's wear; and home-related products such as kitchenware, dining room accessories and
furniture. The division's well-known brands include Autograph, Limited Collection, Blue Harbour and Per
Una.
M&S offers its products and services online as well as through flagship stores, high street stores, retail
park stores, M&S outlets, Simply Food owned stores, and Simply Food franchised stores.
In addition to general merchandise and food, the company provides financial services, such as credit
cards; home and travel insurance; personal loans; and banking services.

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History
History
HISTORY
M&S was founded in 1884 as a stall at an open market in Leeds, the UK. Then known as Marks' Penny
Bazaar, it was the household goods, haberdashery, toy, and sheet-music business of Michael Marks, a
Jewish refugee from Poland. In 1894, he took Thomas Spencer as a business partner. In 1903, M&S was
registered as a private limited company. Although a clothing design department had first been set up in
1938, it was not until after the Second World War that it became fully developed under a leading
designer.
In 1973, the company entered Canada, and purchased Peoples Department Stores and D'Allaird's, a
national women's wear retailer, both of which were sold later. M&S also had direct retailing investments in
Canada. It tried to move south of the border in 1988 with the purchase of Brooks Brothers, but the US
operation never took off as the company had hoped.
Five franchised stores were closed down in Turkey in 1999 when the franchise partner Turk Petrol
Holding could not meet its bank obligations and collapsed. Further in 1999, Marks and Spencer Canada,
after 25 years of business, closed its 38 stores. The company sold its US clothing chain Brooks Brothers
for $225 million in 2001.
In 2003, M&S launched its &more credit card. Alongside this, Marks & Spencer Financial Services was
re-branded as Marks & Spencer Money. In 2004, M&S completed the sale of Marks & Spencer Retail
Financial Services Holdings (M&S Money) to HSBC. During the course of 2005, the company opened 31
Simply Food stores as well as closed the Lifestore project in the UK.
M&S expanded the Simply Food format with the acquisition of 28 stores on a leasehold basis from
Iceland Foods for a consideration of 38 million (approximately $76.3 million) in 2006. In the same year,
M&S sold Kings Super Markets, its only non-M&S branded business, to a US investor group consisting of
Angelo, Gordon & Co, MTN Capital Partners and Mr. Bruce Weitz for $61.5 million in cash.
During 2007, M&S launched its own branded range of LCD widescreen televisions (TVs) in addition to its
collection of Sony TVs; and opened its first standalone home store in Lisburn, Northern Ireland. The
company launched Big & Tall, an exclusive online men's wear offering items ranging from tailoring to
knitwear to casual shirts and trousers.
M&S, in 2008, launched climate control underwear featuring temperature regulating technology
developed by NASA. The company removed artificial colors and flavorings from its entire food and soft
drinks range. During the year, the company also opened a new flagship store in Westfield Centre at White
City, West London, and its first 38,000-square foot store in Shanghai, China.
The company opened 'Food to Go' outlets in Hong Kong in 2009. It launched a beer and cider range to
complement its wine selection. M&S began to offer its online international delivery service to 73 more
countries as part of its drive to grow annual sales of M&S Direct.
During 2010, M&S created a new Home Energy Service division to offer a suite of energy efficiency
products and services to its customers. The company launched a new version of

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History
www.marksandspencer.com designed specifically for use on mobile phones and mobile devices, the first
mobile site from a major UK high street retailer. The company set up a new 1.1-million square foot
distribution center at ProLogis Park Bradford in the UK to serve all of M&S's stores with furniture products
and store equipment. It introduced a range of solar photo-voltaic (PV) and solar thermal water heating
solutions, and opened a new shopping center in Vilnius, Lithuania.
M&S opened its 'greenest ever' store at Ecclesall Road in Sheffield in 2011. This was the first store of a
number of new Sustainable Learning stores planned by the company as part of its drive to become the
world's most sustainable major retailer by 2015.
Further in 2011, the company entered the Egyptian retail market by opening a 28,000-square foot store in
the Dandy Mega Mall in Cairo. M&S launched its new French website, http://www.marksandspencer.fr/,
marking its first international transactional website. The company opened a new store at Westfield,
Stratford City with the latest 'Only at Your M&S' innovations and customer experiences; and its new
flagship store in Paris.
M&S launched its outlet format on its website at www.marksandspencer.com/outlet in 2012 to
permanently offer a selection of more than 1,300 M&S clothing products with up to 40% off the regular
high street and online prices. Further in 2012, the company opened its first new full-line Paris store at So
Ouest in Levallois-Perret.
In 2013, M&S opened a new 900,000-square foot distribution center in Castle Donington, the UK. During
the year, the company unveiled plans to open 150 new M&S Simply Food stores in the UK in the next
three years and a new franchise partnership with Relay France for Food stores in Paris.
M&S opened its flagship store in Hague, the Netherlands; and in Salmiya, Kuwait, in 2014. In the same
year, the company unveiled plans for further international expansion with a focus on opening 250 new
stores, growing its food business and increasing its franchise operations.
The company opened its largest international store in Kuwait in February 2015. The store would be
operated by M&S franchise partner, Al-Futtaim Group and offers a huge selection of clothing, food, home
and beauty merchandise besides operating a 60 seat cafe.
In March 2015, M&S announced its plans to invest in its existing flagship store portfolio with the complete
modernization of its flagship store on West Nanjing Road in Shanghai, China.
M&S opened a new 54,000 square feet store at Toison dOr, Brussels in May 2015.
The company recalled around 400 units of its Twist & Turn rattles due to manufacturing defect, in
September 2015.
During October 2015, M&S introduced Sparks, its new Members Club. Sparks offers a wide range of
lifestyle benefits across food, fashion, home and beauty categories at M&S stores and online.
The company, in January 2016, launched its new Australian website:
http://www.marksandspencerlondon.com/au. This new website provides access to more than 10,000

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History
clothing and homeware products to customers across Australia.

In February 2016, M&S collaborated with Alexa Chung, a fashion icon, to launch a new 31 piece womens
wear collection, Archive by Alexa at selected stores and online at www.marksandspencer.com.

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Key Employees
Key Employees
KEY EMPLOYEES
Name
Job Title
Board
Steve Rowe
Chief Executive Officer
Executive Board
Helen Weir
Chief Financial Officer
Executive Board
Patrick BousquetChavanne
Executive Director, Marketing

and International
Executive Board
973000 GBP
Laura Wade-Gery
Executive Director, Multichannel
Executive Board
1037000 GBP
Amanda Mellor
Group Secretary and Head,

Corporate Governance
Executive Board
Robert Swannell
Chairman
Non Executive Board
468000 GBP
Vindi Banga
Senior Independent Director
Non Executive Board
82000 GBP
Alison Brittain
Director
Non Executive Board
70000 GBP
Miranda Curtis
Director
Non Executive Board
70000 GBP
Andy Halford
Director
Non Executive Board
85000 GBP
Richard Solomons
Director
Non Executive Board
Andrew Fisher
Director
Non Executive Board
Hugo Adams
Director, Property Development Senior Management

and Facilities Management
Andy Adcock
Director, Food
Senior Management
Costas Antimissaris
Director, International
Senior Management
Mike Barry
Director, Plan A
Senior Management
Sacha Berendji
Director, Retail
Senior Management
Carl Dawson
Director, Information
Technology (IT)
Senior Management
Florence De Boosere Global Director, Store

Environment and Product
Presentation
Senior Management
Tanith Dodge
Director, Human Resources

(HR)
Senior Management
Belinda Earl
Style Director
Senior Management
Dominic Fry
Director, Communications and Senior Management

Investor Relations
Dirk Lembregts
Director, Supply Chain
Chris Taylor
Business Improvement Director Senior Management
David Walmsley
Director, M&S.com
Senior Management
Rob Weston
Global Brand and Marketing

Director
Senior Management
Paul Friston
Executive Assistant and
Senior Management

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Compensation
1411000 GBP
Senior Management
Page 8

Key Employees
Business Development Director

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Key Employee Biographies
KEY EMPLOYEE BIOGRAPHIES

Steve Rowe
Board:Executive Board
Job Title:Chief Executive Officer
Since:2016
Mr. Rowe has been the Chief Executive Officer at M&S since April 2016. He was appointed the Executive
Director of General Merchandise at the company in 2015 and the Executive Director of Food in 2012. Mr.
Rowe joined M&S in 1989 and served in various roles within store management during his tenure. He
was appointed the Merchandiser for Menswear in 1992 and became Category Manager in the Furniture
Department in 1998. Mr. Rowe was appointed the Head, Home categories in 2003 and later became
Director, Home in 2004. In 2008, he assumed the role of Director, Retail and in 2009, took up additional
responsibility for e-commerce business.
Helen Weir
Job Title:Chief Financial Officer
Since:2015
Ms. Weir has been the Chief Financial Officer at M&S since 2015. Most recently, she served as the
Finance Director at the John Lewis Partnership (JLP). Before joining JLP, Ms. Weir was with Lloyds
Banking Group, initially serving as its Group Finance Director from 2004 to 2008 and subsequently as the
Group Executive Director, Retail during 200811. Between 2000 and 2004, she was the Group Finance
Director at Kingfisher. Previously, Ms. Weir served as the Finance Director at B&Q. She spent her early
career at Unilever and McKinsey & Co. Ms. Weir was appointed to the Board at SAB Miller as a Non
Executive Director in 2011. In the past, she also served as a Non Executive Director at Royal Mail
Holdings. Ms. Weir is an Independent Non Executive Director at the RFU and a Trustee at Marie Curie
Cancer Care.
Patrick Bousquet-Chavanne
Job Title:Executive Director, Marketing and International
Since:2014
Mr. Bousquet-Chavanne has been the Executive Director, Marketing and International at M&S since
2014. He has over 25 years of experience in the international branded consumer goods industry across
London, Paris and New York. Mr. Bosquet-Chavanne joined Estee Lauder Companies (Estee Lauder) in
1989 as the Vice President and General Manager, Aramis International. Later, he headed Estee Lauders
worldwide Travel Retailing business. During 19982008, Mr. Bosquet-Chavanne served as the President,

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International at Estee Lauder and later, as its Group President. In 2008, he exited Estee Lauder.
Currently, Mr. Bosquet-Chavanne serves as a Director at Brown-Forman and Collectively.org.
Laura Wade-Gery
Job Title:Executive Director, Multi-channel
Since:2014
Ms. Wade-Gery has been an Executive Director, Multi-channel at M&S since 2014. Previously, she was
with Tesco, serving in various senior roles from 1997 to 2011, including as the Targeted Marketing
Director responsible for Tesco Clubcard, and as Group Strategy Director. Before Tesco, Ms. Wade-Gery
held various roles at Gemini Consulting and Kleinwort Benson. She was elected a Director at Royal
Opera House Covent Garden Limited in 2012. Ms. Wade-Gery also served as a Non Executive Director at
Trinity Mirror until 2012. Currently, she is a Non Executive Director at British Land.
Amanda Mellor
Job Title:Group Secretary and Head, Corporate Governance
Ms. Mellor currently serves as the Group Secretary and Head, Corporate Governance at M&S. She joined
M&S as the Head of Investor Relations in 2004. During her early years of career, Ms. Mellor held
investment management roles at James Capel before being appointed as a Director within its Corporate
Finance team. Prior to James Capel, she was with Robert Flemings Investment Banking division. Ms.
Mellor also served as the Director, Corporate Relations and Investor Relations at The Burton Group in the
past. She later moved to Infonet Service Corporation. Before joining M&S, Ms. Mellor served at Holloway
& Associates.
Robert Swannell
Board:Non Executive Board
Job Title:Chairman
Since:2011
Mr. Swannell has been the Chairman at M&S since 2011. He was appointed to the companys Board as a
Non Executive Director in 2010. Mr. Swannell has 30 years of experience in investment banking with
Schroders/Citigroup. Formerly, he was the Vice Chairman at Citi Europe and Chairman at Citis European
Investment Bank. He served as the Senior Independent Director at The British Land Company (from 1999
to 2010) and at 3i Group (from 2006 to 2010). Mr. Swannell also served as the Chairman at HMV Group
from 2009 until 2011; and at Rugby School from 2009 to 2014. He is a member of the Advisory Board at
The Sutton Trust; a Founder and Trustee at the SpringBoard Boarding Bursary Foundation; and a
Trustee at the Kew Foundation.
Vindi Banga

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Job Title:Senior Independent Director
Since:2015
Mr. Banga has been the Senior Independent Director at M&S since 2015. He was appointed a Non
Executive Director at the company in 2011. Mr. Banga was with Unilever for 33 years, serving in a variety
of senior positions including as the President, Global Foods, Home and Personal Care businesses. He
also served as a member of the Unilever Executive Board. Mr. Banga is a Partner at Clayton Dubilier &
Rice, a private equity investment firm; Non Executive Director at Thomson Reuters; Chairman at the
Mauser Group and the Confederation of British Industrys (CBI) Economic Growth Board.
Alison Brittain
Job Title:Director
Since:2014
Ms. Brittain has been a Director at M&S since 2014. She is the Chief Executive designate at Whitbread, a
global organization with a portfolio of hospitality brands including Costa and Premier Inn. Previously, Ms.
Brittain served as the Group Director at Lloyds Banking Group's Retail Division, responsible for the
Lloyds, Halifax and Bank of Scotland retail branch networks, remote and intermediary channels and
products, and the Retail Business Banking and the UK Wealth businesses. Before Lloyds, she served as
an Executive Director, Retail Distribution and a Director at Santander UK. Previously, Ms. Brittain was
with Barclays for about 20 years serving in various senior roles, including the Director, Barclays and
Woolwich Retail Networks and Managing Director, Barclays Small Business Banking.
Miranda Curtis
Job Title:Director
Since:2012
Ms. Curtis has been a Director at M&S since 2012. Previously, she was with Liberty for 20 years during
which period, she led its investments in digital distribution and content operations across Continental
Europe and Asia-Pacific. Later, Ms. Curtis retired from her executive role and joined the Board at Liberty
Global as a Non Executive Director. Currently, she serves as the Chairman at Waterstones. Ms. Curtis is
a former Non Executive Director at National Express Group until 2012.
Andy Halford
Job Title:Director
Since:2013
Mr. Halford has been a Director at M&S since 2013. He is the Group Finance Director at Standard
Chartered, a position held since 2014. Previously, Mr. Halford served at Vodafone Group (Vodafone) for

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15 years. During his tenure at Vodafone, he served as the Chief Financial Officer for nine years. Initially,
Mr. Halford was appointed the Financial Director at Vodafone Limited in 1999 and was later appointed as
the Financial Director for Vodafone's Northern Europe, the Middle East and Africa Region in 2001. He
served as the Chief Financial Officer at Verizon Wireless in the US from 2002 to 2005. Mr. Halford was
also a member of the Board of Representatives at the Verizon Wireless partnership until 2013. Before
joining Vodafone, he served as the Group Finance Director at East Midlands Electricity. Mr. Halford is the
former Chairman at The Hundred Group of Finance Directors in the UK.
Richard Solomons
Job Title:Director
Since:2015
Mr. Solomons has been a Director at M&S since 2015. He has also been the Chief Executive Officer at
IHG since 2011. Previously, Mr. Solomons was the Chief Financial Officer and Head, Commercial
Development at IHG. Initially, in 1992, he joined Bass (later Six Continents), the company from which IHG
emerged and subsequently served in various senior roles including as the Chief Operating Officer of the
Americas Hotels division and Finance Director. Mr. Solomons also served as the Interim President at
IHG's Americas business in 2008. Prior to IHG, he was with Hill Samuel Bank, working in Investment
banking for seven years based in New York and London.
Andrew Fisher
Job Title:Director
Since:2015
Mr. Fisher has been a Director at M&S since 2015. Over the past 18 years, he headed the successful
growth of various technology focused enterprises. Currently, Mr. Fisher serves as the Executive
Chairman at Shazam. Before Shazam, he founded and served as the Managing Director at TDLI.com,
which was acquired by InfoSpace. Later, Mr. Fisher was appointed the European Managing Director at
InfoSpace. Currently, he serves as a Non Executive Director at MoneySupermarket.com Group since
2014. Mr. Fisher is also an Advisor to the Secretary of State for the current review of the BBC Charter.
Hugo Adams
Board:Senior Management
Job Title:Director, Property Development and Facilities Management
Since:2014
Mr. Adams has been the Director of Property Development and Facilities Management at M&S since
2014. In 2008, he joined the company as the Head, International Business Development and later took up
the responsibility to manage the Europe and Middle Eastern franchise businesses and International
Operations and Communications in 2009. Before joining M&S, Mr. Adams held various senior positions in
merchandising, marketing, business development, strategy and general management areas at The Body

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Shop, Kraft Foods and Dyson. He was appointed as an Executive Assistant to the Chief Executive in
2011.
Andy Adcock
Job Title:Director, Food
Since:2015
Mr. Adcock has been the Director of Food at M&S since 2015. He joined the company as the Commercial
Director, Food in 2009 and was later appointed as the Trading Director, Food. Before M&S, Mr. Adcock
served in various senior positions within trading, marketing and merchandising areas at Asda Walmart,
including most recently as the Brand Director. He started his career at J Sainsburys, where he worked in
different buying departments. Mr. Adcock has more than 20 years' experience in the retail sector and has
held various roles across all areas of food, beverage and beauty.
Costas Antimissaris
Job Title:Director, International
Since:2014
Mr. Antimissaris has been the Director, International at M&S since 2014. Previously, he was responsible
for the International Business Development at the company. Mr. Antimissaris has an extensive
international work experience, having worked at Inditex Group for 15 years in the past. Most recently, he
served as the Managing Director of Uterque, part of the Inditex Group. Previously, Mr. Antimissaris was
the General Managing Director of Zara Spain. He also served as the General Manager of Inditex in
Greece and Austria, the Czech Republic and Hungary. Before Inditex, Mr. Antimissaris was a Consultant
at Ernst & Young in Greece and at the European Commission.
Mike Barry
Job Title:Director, Plan A
Mr. Barry currently serves as the Director of Plan A at M&S. Initially in 2007, he was part of a small team
which developed and delivered the company's Plan A, a 100 point, five year plan to address various
environmental and social concerns. Before joining M&S in 2000, Mr. Barry served as an Environment
Manager in the engineering sector and as an Environmental Consultant.
Sacha Berendji
Job Title:Director, Retail
Since:2012

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Mr. Berendji has been the Director of Retail at M&S since 2012. He joined M&S through the Graduate
training program in 1994 and took up various retail appointments across the UK including as the General
Manager, Marble Arch Store and Regional Manager for London. He moved to the Property Group as the
Head, Property Planning and Store Development in 2007 and was later appointed as an Executive
Assistant to the Chief Executive in 2009. Subsequently, Mr. Berendji was named the Director,
Merchandising.
Carl Dawson
Job Title:Director, Information Technology (IT)
Mr. Dawson currently serves as the Director of IT at M&S. Previously, he was the Chief Information
Officer, Internet Retailing at Tesco, responsible for all e-commerce and mobile platforms. Before Tesco,
Mr. Dawson served as the Chief Information Officer at Shop Direct Group and at Thomas Cook Group.
Florence De Boosere
Job Title:Global Director, Store Environment and Product Presentation
Since:2013
Ms. De Boosere has been the Global Director of Store Environment and Product Presentation at M&S
since 2013. Previously, she was with Inditex for 15 years, most recently serving as the Commercial
Director of Benelux for Zara. Prior to that role, Ms. De Boosere was the International Director for Zara,
responsible for opening new markets for Zara in several countries.
Tanith Dodge
Job Title:Director, Human Resources (HR)
Since:2008
Ms. Dodge has been the Director of HR at M&S since 2008. Formerly, she was the Group HR Director at
WH Smith from 2003. Ms. Dodge was also responsible for public relations, communications and post
office operations at WH Smith. Before WH Smith, she served as the Senior Vice President of HR for
Europe, the Middle East and Africa at InterContinental Hotels Group. She also served in two HR Director
roles for divisions at Diageo in the past. Previously, Ms. Dodge was the International HR Manager at
Prudential Corporation.
Belinda Earl
Job Title:Style Director
Since:2012

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Ms. Earl has been the Style Director at M&S since 2012. Previously, she served as the Chief Executive
Officer at Debenhams (from 2000 to 2003) and at Jaeger (from 2004 to 2011). Ms. Earl began her retail
career as a Graduate Trainee at Harrods and later held roles in fashion buying. She joined Debenhams in
1985, where she held various senior positions in buying and merchandise management in mens,
womens, accessories and childrens departments. Ms. Earl was appointed as the Trading Director at
Debenhams in 1998 and as the Chief Executive in 2000.
Dominic Fry
Job Title:Director, Communications and Investor Relations
Mr. Fry currently serves as the Director of Communications and Investor Relations at M&S. He joined the
company in 2009. Previously, Mr. Fry was with Tulchan Communications. He began his career at
Traverse-Healy & Regester in 1982 and then moved to Charles Barker. Mr. Fry was appointed the
Communications Director at AT&T in the UK in 1989. He headed the communications for the Channel
Tunnel in the mid 1990s. In 1996, Mr. Fry was appointed the Communications Director at J Sainsbury and
also served in the same role at ScottishPower during 200005.

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Major Products & Services
MAJOR PRODUCTS & SERVICES

M&S is one of the leading retailers of general merchandise and food in the UK. The company's key
products and services include the following:
Products:
Women's wear
Men's wear
Lingerie
Children's wear
Toys and games
Shoes and accessories
Beauty products
Food and grocery items
Wine
Homeware and home accessories
Furniture products
Travel luggage and related accessories
Flowers
Gifts
Cards and stationery
Services:

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Credit cards
Home and travel insurance
Personal loans
Banking services
Brands:
Autograph
Limited Collection
REN
Josh Wood
Shay & Blue
Limited Edition
M&S Collection
Indigo Collection
Twiggy
Blue Harbour
North Coast
Big & Tall
Per Una

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Revenue Analysis
Revenue Analysis
REVENUE ANALYSIS
Overview
M&S recorded revenues of 10,311.4 million ($16,643.6 million) in FY2015, registering a marginal
increase compared to FY2014. For FY2015, the UK, the company's largest geographic market,
accounted for 89.4% of the total revenues.
The company generates revenues through two business divisions: food (56.8% of the total revenues in
FY2015) and general merchandise (43.2%).
Revenues by division*
In FY2015, the food division recorded revenues of 5,234.7 million ($8,449.3 million), an increase of 3.4%
over FY2014.
The general merchandise division recorded revenues of 3,988.4 million ($6,437.7 million) in FY2015, a
decrease of 2.5% compared to FY2014.
*The revenue breakdown by division is only for the revenues from the UK market.
Revenues by geography
The UK, M&S' largest geographical market, accounted for 89.4% of the total revenues in FY2015.
Revenues from the UK reached 9,223.1 million ($14,887 million) in FY2015, an increase of 0.7% over
FY2014.

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Revenue Analysis
International operations accounted for 10.6% of the total revenues in FY2015. Revenues from
international operations reached 1,088.3 million ($1,756.6 million) in FY2015, a decrease of 5.7%
compared to FY2014.

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SWOT Analysis
SWOT Analysis
SWOT ANALYSIS
M&S is one of the leading retailers of general merchandise and food in the UK. The company has a
strong focus on the UK retailing market, which helps in its top-line growth. However, surge in shoplifting
could negatively impact the cost structure of the company.
Strength
Weakness
Strong focus on the UK retailing market

Multi-channel retailing approach
Effective CSR strategy
Significant reliance on the UK market

Frequent product recalls
Opportunity
Threat
Expansion of food business division

Increasing presence in fast growing retail markets in
China and India
Favorable trends in global online retailing
Surge in shoplifting losses

Rising labor costs in the UK
Strength
Strong focus on the UK retailing market
M&S has a strong focus on the UK retailing market with a particular emphasis on its food and general
merchandise business. In its food business, in FY2015, the company launched 1,700 new food lines. The
company launches innovative food products, which help it in retaining existing customers besides
attracting new ones. For instance, during FY2015, M&S introduced a wide range of cuisines from
Thailand, Mexico, Vietnam and Japan. It also introduced 39 new variants in frozen meals range, which
included dishes such as slow cooked chicken and chorizo stew and pulled pork with potato and kale
hash. In its clothing business, in FY2015, the company focused on improving its product ranges and
accessibility to the customers. M&S expanded its Womenswear Limited Edition brand to all stores and
improved the availability of Rosie for Autograph lingerie and sleepwear ranges in more number of stores.
In the UK, the company sold its products primarily through 852 stores (as of FY2015), serving 33 million
customers. M&S has set up its stores in the convenient locations across high streets and in retail parks.
Such strong presence in the UKs retail market has helped the company enjoy a significant market share
in the country. As of FY2015, M&S had a market share of 4.1% in the UKs food retail market; while in the
UKs womenswear and menswear markets, the company held a market share of 9% and 10.8%,
respectively. It also holds a share of 26.3% and 5.9% in the UKs lingerie and kidswear markets,
respectively. The company's strong focus on the UK retailing market helps in its top-line growth.

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SWOT Analysis
Multi-channel retailing approach

M&S follows a multi-channel approach. Besides operating stores, the company also has presence in
online, mobile site and home catalogue channels. The company operates online businesses both in the
UK and international markets. In 2011, it launched its first international transactional website in France at
http://www.marksandspencer.fr/. Further, in January 2016, M&S launched a new Australian website:
http://www.marksandspencerlondon.com/au, thereby expanding the access of more than 10,000 clothing
and homeware products to customers across Australia. At the end of FY2015, M&S.com website had
more than 7 million registered users, with weekly site visits of 6.1 million. Through mobile application, the
company updates its customers on various offers and bonuses, besides offering a huge selection of
merchandise. In FY2015, M&S launched a new mobile application, Cook with M&S on the iOS platform,
targeting its food business.
Further supporting its online business, M&S provides 'Shop Your Way' service, which allows its
customers to place their order online and collect the merchandise at any of the stores across the UK.
Multi-channel approach helps the company to address a wide customer base.
Effective CSR strategy
The CSR strategy has been gaining prominence not just among the stakeholders and governments but
the consumers as well. M&S has the highest proportion of consumers believing it to be a responsible
retailer. This can largely be attributed to the success of its Plan A, a 100-point plan worth 200 million
($316 million) launched in 2007. This plan was initially launched with an aim of making M&S UK business
carbon neutral. In 2010, 80 additional commitments were added to Plan A, which totaled to 180
commitments. Further, in FY2014, the company launched Plan A 2020 with a goal to position M&S as the
worlds most sustainable major retailer. Plan A 2020 consists of 100 new, revised and existing
commitments. In FY2015, the company achieved 47 commitments out of total 100 commitments.
In the climate change area, the company's initiatives aim at reducing its greenhouse gas emissions in
both absolute terms and by carbon intensity. According to M&S, its stores, offices, warehouses and
delivery fleets in the UK and Republic of Ireland are carbon neutral. In its fair partnership area, the
company works closely with its suppliers across a range of initiatives aimed at improving the working
standards, education, opportunities, health and financial wellbeing of all the people involved in its supply
chains. In the health and wellbeing area, M&S provided additional health services and policies to its
employees by encouraging healthy eating habits and promoting exercise and mental health awareness.
During FY2015, the company developed a new calendar of health events and activities which included
the annual weight loss challenge, a Get Active program and Dementia Friends campaign. It also offers
free breast screening to the female employees aged 40 to 49 as part of early detection of breast cancer.
In the natural resources area, M&S has been working on a range of key raw materials including fish, palm

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Page 22

SWOT Analysis
oil, cotton, and leather, among others. The companys Plan A 2020 commitment for natural resources set
a target to source a minimum of 26% of leather used in manufacturing M&S leather products from Leather
Working Group (LWG) rated tanneries by 2020. This target was achieved in FY2015. Such effective and
efficient CSR strategies adopted by M&S have been enabling it to achieve certain significant recognitions
in the UKs retail market. For instance, in FY2015, the company was listed among 2014 Worlds Most
Responsible Companies by an industry source. Hence, these CSR strategies are helping M&S
strengthen its brand image in the retail industry.
Weakness
Significant reliance on the UK market
Although M&S operates in international markets, it is significantly dependent on its domestic market, the
UK, for majority of its revenues. In FY2015, the company generated 89.4% of its total revenues from the
UK. Dependency on the UK market for major portion of its revenues could make M&S' business and
operations vulnerable to country-specific trends. Such geographic concentration increases the risk that,
should any adverse economic, regulatory, environmental or other developments occur in the UK, the
company's business and financial condition will be affected. The company may also be substantially
affected by the political or cultural changes that could occur due to the geographical concentration in the
UK.
Frequent product recalls
M&S has recalled certain products in the recent past. The company recalled two vegetable crispbakes
due to labelling issue in December 2015. The product may contain a small quantity of egg, which is not
mentioned on the label. This means the product may pose health risk for those with an allergy to egg.
M&S also recalled around 400 units of its Twist & Turn rattles due to manufacturing defect in September
2015. The company identified that the balls contained inside the product could be released, posing a
potential hazard to the child. Frequent product recalls affect the consumers confidence on M&S products
and thereby impact its sales.
Opportunity
Expansion of food business division
In FY2015, M&S revised its previously announced plans to increase the Simply Food store count in the
UK. According to the new plan, the company aims to open 250 new Simply Food stores in the UK by
FY2016 (compared to 200 stores as announced in FY2014). This strategy helps M&S further enhance its
specialist food positioning and reduce drive times to access M&S Food. In FY2015, the company opened
62 new Simply Food stores in the UK and 10 in the international markets, increasing the overall store
count to 504. This move increased the access of the Simply Food stores to an additional 1.2 million
customers in the UK who are now within 10 minutes away from the store.

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SWOT Analysis
Further, in the international markets, the company opened six new food stores in Paris and four in Hong
Kong during FY2015. This increased the overall international food stores count to 31. M&S also opened
its largest international store in Kuwait in February 2015. This store would be operated by the companys
franchise partner, Al-Futtaim Group, and features an extensive range of clothing, food, home and beauty
products in addition to a 60 seat cafe.
Focused expansion of the food business in both domestic and international markets helps M&S to
diversify its geographical presence. It also enables the company to serve an expanded customer base
globally.
Increasing presence in fast growing retail markets in China and India
Retail markets in China and India are expected to record high growth rates in the future. Asia's retail sales
are estimated to increase with China driving the growth. The fast pace economic development in China
coupled with the rise of the middle class income group and their increasing disposable income have
further pushed up the demand for several consumer goods. Strong underlying economic trends,
population growth and the increasing wealth of individuals are key factors that contribute to the retail
market expansion in China.
In China, M&S intends to enter key cities such as Beijing and Guangzhou by opening new flagship stores
beginning FY2016. In Greater China, the company opened a new store in Macau. M&S has also reviewed
the shape of its existing store portfolio. For instance, it closed five small stores in Shanghai region during
FY2015. In response to its growing online presence in China through the Tmall.com marketplace, M&S
launched a new dedicated kidswear store on Tmall.com and a new clothing store on JD.com in January
2015. Furthermore, M&S expanded its food store portfolio in Hong Kong during FY2015 by opening four
new stores.
M&S is also strengthening its presence in India as part of its geographic expansion. In 2012, the Indian
government removed restrictions on foreign direct investment in its single-brand retail sector, paving the
way for global store chains such as M&S to have full ownership of its Indian operations. With the opening
up of single brand retailing in India, foreign retailers can own the stores entirely and they are not required
to collaborate with an Indian partner, which facilitates greater control over the operations and flexibility in
projection of their brands. By the end of FY2015, the company opened 12 stores in India and expects to
increase the count in the future.
Expansion in fast growing retail markets in China and India could help M&S reduce its dependence on the
mature UK retail market.

MarketLine
Page 24

SWOT Analysis
Favorable trends in global online retailing

The online retail industry worldwide grew significantly in the recent past and the trend is expected to
continue in the future as well. According to MarketLine, the global online retail market grew at a
compound annual growth rate (CAGR) of 22.6% during 201014 to reach a value of $974.5 billion in
2014. This growth is strongly being driven by Asia-Pacific markets, where e-commerce is still developing
in majority of the countries. Europe accounts for 34.8% of the global online retail sector value, followed by
the US (30.6%), Asia Pacific (28.1%) and rest of the world (6.4%). By 2019, the global online retail sector
is forecast to reach a value of $2,090.2 billion, an increase of 114.5% since 2014.
M&S conducts online business through M&S.com. In addition, the company operates dedicated websites
in international markets such as France and Australia. With strong presence in the online retailing sector,
the company is well positioned to benefit from the growing trend in the industry globally.
Threat
Surge in shoplifting losses
The UK retailers are exposed to increased costs of shoplifting. Shoplifting has assumed massive
proportions in recent times. According to industry estimates, retail crime cost in the UK stores was about
$610 million in 2015, an increase of over 1.5% compared to the previous year. Also, this is the highest
crime rate since beginning of the records. Long-term trends also show the figure is likely to continue
rising. As a result, retailers have been increasing their surveillance spend. This is increasing the costs for
retailers as well as for the end consumers. The shoplifting losses are adding to the costs for the retailers
and the customers have also been bearing the brunt. The surge in shoplifting losses could negatively
impact M&S profitability.
Rising labor costs in the UK
Labor costs are rising in the UK. The National Minimum Wage (NMW) Regulations came into force in
1999 and since then the NMW rates have been increased annually. The national minimum wage (for
people aged 21 and over) in the UK increased from 6.08 per hour ($9.49 per hour) in October 2011 to
6.19 per hour ($9.6 per hour) in October 2012; and 6.31 per hour ($9.85 per hour) in October 2013 to
6.5 ($10.8 per hour) in October 2014. Further, the minimum wage rate increased to 6.7 ($10.4 per
hour) in October 2015.
In FY2015, M&S employed about 89.9% of its total average number of employees in the UK. Hence,
rising labor costs would escalate the company's wage bills. This, in turn, could affect its operating profit
margin.

MarketLine
Page 25

Top Competitors
Top Competitors
TOP COMPETITORS
The following companies are the major competitors of Marks and Spencer Group plc
Arcadia Group Limited
Asda Stores Limited
Debenhams plc
French Connection Group Plc
H & M Hennes & Mauritz AB
Home Retail Group Plc
Industria de Diseno Textil SA
J Sainsbury plc
John Lewis Partnership plc
NEXT plc
Selfridges Retail Limited
Tesco PLC
The Gap, Inc.

MarketLine
Page 26

Company View
Company View
COMPANY VIEW
A statement by Robert Swannell, the Chairman at M&S, is given below. The statement has been taken
from the companys Annual Report for FY2015.
OVERVIEW
This year we have seen outstanding performance in some areas of the business but performance below
our expectations in others. The overall result is that underlying profits before tax moved ahead 6.1% to
661.2m. We have achieved a number of the strategic priorities we set out at the beginning of the year,
becoming a more capable company with significantly stronger infrastructure, but we experienced some
implementation issues along the way. We embedded new values aligned with our strategic goals. These
values, which put integrity at their core, respect our heritage whilst helping us to become the modern,
agile company we need to be. Above all, we remain focused on one thing: offering our customers
products of exceptional quality and value that they can trust, however they choose to shop with us.
PERFORMANCE
Our Food business had an outstanding year in a sector that continues to go through profound change. In
the most competitive food market of recent years, we delivered like-for-like growth in every quarter and
maintained our margin. We have a clear and distinct offering and our growth plans look clear and
achievable.
Our General Merchandise (GM) business delivered significant margin gains the first step in reaping the
benefits of the investment we have made and our products were well received by our customers and
the fashion press. Whilst our overall performance was affected by the implementation issues outlined
below, it was pleasing to exit the year in the final quarter with all elements of our GM business showing
growth.
Performance in our International business was disappointing. Strong sales performance in key owned
markets, for example India and Hong Kong, was more than offset by macroeconomic issues and
performance in key franchise markets, particularly Russia, Ukraine and Turkey.

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Company View
We implemented two crucial pieces of infrastructure: our new M&S.com website and our automated
distribution centre at Castle Donington, two of the largest projects of their kind in Europe. Whilst projects
of this scale are likely to experience some initial performance issues, these were greater than we
anticipated. Our skilled teams acted decisively to address the issues. The strategic rationale for both
projects remains clear.
BOARD PRIORITIES
The Boards three priorities have remained the same since I became Chairman in 2011: we are focused
on strategy and execution, people and succession, and values. Having completed the bulk of our major
three-year investment programme to transform M&S into an international, multi-channel retailer, the
Boards focus again this year was on ensuring that our substantial investment delivers the required
returns. We also devoted time to ensuring we have the right talent and skills required in our business, and
to debating and articulating our values, discussed below.
BOARD CHANGES
There have been a number of changes to the Board this year.
Jan du Plessis, our Senior Independent Director, stepped down in March 2015, having served on the
Board since 2008. I would like to thank Jan for his commitment and contribution to M&S over the years.
His insights and experience have been invaluable. Vindi Banga, who has served on our Board since
2012, took on the position of Senior Independent Director; he also chairs the Remuneration Committee.
In April 2015, Richard Solomons joined the Board as a non-executive director. Richard is Chief Executive
of InterContinental Hotels Group and brings strong commercial, consumer, branding and global
experience to the M&S Board.
On the executive team I would like to extend a warm welcome to Helen Weir, our new Chief Finance
Officer. Helen has exceptional credentials in both retail and finance having previously held the same

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Company View
position at John Lewis Partnership, Lloyds Banking Group and Kingfisher.
OUR VALUES AND PLAN A
The culture at M&S is important to the Board. Our values are a fundamental part of how we do business
they are what makes M&S different. Last June we introduced four new core values built on the principles
that have guided M&S since it was founded in 1884. The values Inspiration, Innovation, Integrity and In
Touch aim to equip us all to deliver our strategic plans.
But while the words are new, we have not changed what matters to us. Acting with integrity is at the heart
of the way we do business. So our customers can be sure that the GM margin gains we achieve will not
come at the expense of the standards we expect in our factories; they can be safe in the knowledge that
we will not compromise on the provenance of our food; and they can rely on us to be a force for good in
the communities in which we operate.
Our commitment to Plan A, the programme we launched eight years ago to become the worlds most
sustainable major retailer, remains as deeply held today as it ever was. As people become increasingly
aware of how their behaviour impacts the world around them, we believe businesses need to connect
with the communities in which they operate. From healthy living to ethical sourcing, we are committed to
leading the way and striving to offer our customers the most sustainable options possible. As M&S
becomes more international, our ability to lead with others on a global scale grows, whether by using our
scale to drive improvements in our own supply chain, or by lending our expertise to global industry
initiatives.
STAKEHOLDER ENGAGEMENT
Engaging with stakeholders and employees is particularly important during times of change. We
communicate regularly with our shareholders to ensure they understand our progress and plans. Outside
our results, this year, we held investor briefings on M&S.com and our International business, and Marc
Bolland and his executive team had many meetings with investors. All information shared at these events
is available to shareholders at marksandspencer.com/investors. We again held a governance event for
our largest shareholders, which I led with our Senior Independent Director.

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Company View
We have recently implemented a new loyalty scheme for our private investors. The scheme allows over
190,000 of our UK-registered private investors to use money from their dividend payment to buy an M&S
Shareholder Card at a discount. It operates much like a gift card. The initiative reflects the fact our private
investors are also some of our most loyal customers and we value them greatly.
Our Fit for the Future programme was one of our biggest ever engagement exercises, where employees
discussed the shape of the new values. We also launched a scheme for the 3,500 section managers who
between them manage 92% of our sales floor colleagues. The programme inspired and motivated these
managers, who are the beating heart of M&S.
LOOKING AHEAD AND DIVIDEND
M&S is a more capable and better equipped business than it was a year ago. In the coming year we will
continue to focus on growth in Food, improving GM performance, further improving margins and cash
generation.
Our dividend policy remains a progressive one, with dividends broadly covered twice by earnings. We
intend to pay a final dividend of 11.6p this year, taking the total dividend to 18.0p, up 5.9% on last year. In
the context of our increased free cash flow, we are also pleased to announce an ongoing programme of
returns of capital to shareholders, starting this year, with a share buyback programme of 150m.
Finally, I would like to thank all our employees for their hard work and commitment at a time of significant
change. M&S employees are dedicated and upbeat I am always struck by their positive attitude and
energy. Their pride in M&S and commitment to the business are what makes us special. I want to thank
every one of them in stores and in our offices for their contribution this year.

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Locations And Subsidiaries
Locations And Subsidiaries
LOCATIONS AND SUBSIDIARIES

Head Office
Waterside House
35 North Wharf Road
London W2 1NW
GBR
Phone:44 20 7935 4422
http://www.marksandspencer.com/
Other Locations and Subsidiaries

Marks & Spencer - Belgium
26-28 Avenue de la Toison D'Or
1050 Brussels
BEL
Marks & Spencer - Covent Garden

107 - 115 Long Acre Covent Garden
London WC2E 9NT
GBR
Phone:44 20 7240 9549
Marks & Spencer - France

Gare RER - Grande Halle La Defense
92800 Puteaux
FRA
Phone:33 1 42 91 37 57
Marks & Spencer - Ireland

The Corrib Centre
1-4 Eyre Street
County Galway
IRL
Phone:353 91 507098
Marks & Spencer - Netherlands

Kalverstraat 226
1012 XJ Amsterdam
NLD
Marks & Spencer - Oxford Street

173 Oxford Street
London W1D 2JR
GBR
Phone:44 20 7437 7722
Marks & Spencer - Spain

Taoro 11
25110 Vecindario
Gran Canaria
ESP
Simply Food - Bristall

Unit 12 Birstall Shopping Park
Bristall WF17 9AE
GBR
Phone:44 19 2444 3492
Simply Food - London

78 Piccadilly Devonshire House
London W1J 8AQ
GBR
Phone:44 20 7491 0690
Simply Food - St Neots

47-51 High Street
St Neots PE19 1BN
GBR
Phone:44 14 8040 5914

MarketLine
Page 31
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REFERENCE CODE: DFE67A38-E021-448F-BC58-3944E618713F

Marks and Spencer Group plc

Marks and Spencer Group plc

Marks and Spencer Group plc

Marks and Spencer Group plc

London Stock MKS

Marks and Spencer Group plc

Marks and Spencer Group plc

Marks and Spencer Group plc

Marks and Spencer Group plc

Marks and Spencer Group plc

Marks and Spencer Group plc

Marks and Spencer Group plc

Marks and Spencer Group plc

clothing and homeware products to customers across Australia.

Marks and Spencer Group plc

Marks and Spencer Group plc

Chief Executive Officer

Chief Financial Officer

Executive Director, Marketing

Executive Director, Multichannel

Group Secretary and Head,

Non Executive Board

Senior Independent Director

Non Executive Board

Non Executive Board

Non Executive Board

Non Executive Board

Non Executive Board

Non Executive Board

Director, Property Development Senior Management

Florence De Boosere Global Director, Store

Director, Human Resources

Director, Communications and Senior Management

Director, Supply Chain

Business Improvement Director Senior Management

Global Brand and Marketing

Executive Assistant and

Marks and Spencer Group plc

Marks and Spencer Group plc

Business Development Director

Marks and Spencer Group plc

Marks and Spencer Group plc

Key Employee Biographies

KEY EMPLOYEE BIOGRAPHIES

Marks and Spencer Group plc

Marks and Spencer Group plc

Marks and Spencer Group plc

Marks and Spencer Group plc

Board:Non Executive Board

Marks and Spencer Group plc

Marks and Spencer Group plc

Marks and Spencer Group plc

Marks and Spencer Group plc

Marks and Spencer Group plc

Marks and Spencer Group plc

Marks and Spencer Group plc

Marks and Spencer Group plc

Marks and Spencer Group plc

Marks and Spencer Group plc

Major Products & Services