Blog: M&S prepares for a bumpy ride
Leonie Barrie | 9 January 2008
“A disappointing Christmas tale” is how one analyst described M&S’ third quarter results, while others threw the words “dreadful” and “shocking” into the mix. But why are they so surprised? Way back in November retailers were expressing their fears that the negative impact of higher energy bills and mortgage costs on take-home pay and spending power would eat into their bottom lines.
And so it has. Next has already warned of a difficult year ahead, and today M&S did the same. But the company is determined to stick to its guns, and is preparing itself for a bumpy ride.
“We are well positioned with a strong product offer and better than ever values across our business,” said CEO Sir Stuart Rose, adding that the retailer is determined not to get caught in the trap the late 1990s when it hit a trading blackspot after thinking it was immune from pricing in the market. “We were not.”
“We now have 70% of our stores in the modernised format [which makes them attractive places for beleaguered shoppers] and a strong pipeline of new space for 2008 and beyond. Direct and International continue to make good progress.”
“Would I have done anything differently,” he asked analysts today, before replying: “I don’t think so.” Which is surely the best pointer for the market that the current strategy, which has been so successful over the past nine quarters, is still the right one.
Fresh from their disappointment at seeing the Trans-Pacific Partnership (TPP) free trade deal abandoned last month with an executive order by President Donald Trump, the US apparel and footwear sector...
With the ultimate aim of ensuring all the cotton in its products is sourced sustainably, value clothing retailer Primark is adamant that having a business model focused on offering the lowest prices o...
Last week we marked the inauguration of Donald Trump as the 45th president of the United States by taking a closer look at what's at stake for the textile and apparel trade – especially his promises t...
Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...
- China leads US apparel sources with falling prices
- Hard hit Turkish industry is not knocked out
- Vietnam grows share of US apparel imports in 2016
- US apparel sector braces for potential cost hikes
- "Power of the many" drives change at Otto Group
- US Q4 in brief – Chico's FAS, TJX Companies
- Bangladesh crackdown has cost garment sector $100m
- Adidas and Burberry recognised for sustainability
- VF Corp sees Q4 and FY earnings tumble
- Macy's will "do the right thing", says Lundgren
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective
- Technical textile markets: product developments and innovations, December 2016
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Global market review of lingerie – forecasts to 2022