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.
Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...
The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...
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...
- What TTIP might mean for US, EU textiles & apparel
- Four steps to reduce product defects
- Unlocks for the future fashion sourcing landscape
- Geo-political uncertainty and how to survive it
- Where next for Corporate Human Rights Benchmark?
- H&M, VF Corp and Levi among most ethical companies
- US Q4 in brief – PVH Corp, J Crew, Perry Ellis
- Sears has "substantial doubt" of future
- Vietnam limits hazardous chemicals in apparel
- PVH Corp to acquire e-commerce retailer True&Co
- Central and East Europe Report Package
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective