Blog: Leonie BarrieHitting back at analysts

Leonie Barrie | 21 May 2009

Last week I mused about what Sir Stuart Rose would have to say to those analysts who suggested they were fed up with the way M&S management is running the firm.

True to form, he took a sideways swipe at their criticism on Tuesday at a media briefing to discuss the retailer’s annual results.

Analysts at broker Investec had slammed M&S’s “discounting to protect market share, and cost-cutting to protect the dividend,” and suggested that rather than trying to compete with the likes of Primark and Tesco it should focus on quality instead.

But Rose pointed out: “Our price architecture is the broadest in the land. You can buy a men’s suit for GBP49.50 or GBP600+ and we can serve everybody, which is why we have 22% of the men’s suit market. And in many other major categories we are the same.

“We are not a discount house, we are a value house. People who don’t understand that clearly aren’t talking the same language as our customers are; we were voted yesterday by YouGov as being the most trusted brand in the high street, and the brand they’d least like to see disappear.”

The analysts will no doubt be happy at M&S’s decision to cut its dividend by a third, but they’ll have to wait for some time before there’s a decision on who will be the next chief executive.

 


BLOG

US retailers stock up amid tariff threat

Apparel imports into the US took a tumble in March, with double-digit declines from three of the top ten supplier countries. While the results reflect Lunar New Year factory shutdowns in Asia, China –...

BLOG

Uncertain times should spur innovation

The uncertainty of potential tariffs affecting the clothing and textile sector – and a Trump administration that appears poised to levy more of them – continue to loom large over the apparel and footw...

BLOG

How Bangladesh has moved from "basket case" to bellwether

The fifth anniversary of the collapse of the Rana Plaza factory building in Bangladesh dominated coverage on just-style last week....

BLOG

Bangladesh safety gaps still remain

As the apparel industry prepares to mark the fifth anniversary of the Rana Plaza factory building tragedy, a new report estimates it could cost US$1.2bn to complete remediation across Bangladesh's rea...

just-style homepage



Forgot your password?