# data[].attributes.body
M&S Clothing - how the retailer revamped its fashion arm (retailgazette.co.uk)

# data[].attributes.attachment_link.description
Welcome to the M&S website. Shop clothing, home, furniture, beauty, food, wine, flowers & gifts. Buy now for free delivery, store collections and returns.

# data[].attributes.headline
TASK 1 – Brand and trend research & analysis 

# data[].attributes.subject
TASK 1 – Brand and trend research & analysis 

# data[].attributes.body
What? A visual-rich PDF presentation (group work, individual submission)

When? By 4pm Wednesday 28th February 2024 Where?

What you need to do: This is the starting point for research in your portfolio. Part of your role in the insights team is to identify and validate the methods of forecasting in trend reports.

1) Research your brand M&S clothing.

2) Select one theme/trend from Unique Style Platform’s Forecast (See Week 2 teaching material in the unit area on myUCA) that relates to your brand, and their customer for 2025.

3) Prepare a visual-rich presentation, max 5 slides long, to present your brand and trend research and analysis.

4) Include a list of illustrations and a list of credible references - Make sure you use UCA Harvard Referencing: https://mylibrary.uca.ac.uk/referencing

# data[].attributes.headline
Is fast fashion giving way to the sustainable wardrobe?

# data[].attributes.subject
Is fast fashion giving way to the sustainable wardrobe?

# data[].attributes.body
The government-backed sustainable clothing action plan, whose signatories include Next, M&S, Ted Baker, Primark and Asos, has committed nine major retailers to reduce waste sent to landfills, water use and carbon footprint by 15% by 2020.

Recycling is also becoming mainstream, with Primark set to launch a clothing take-back scheme in 2019, joining similar efforts by M&S and H&M that have been in operation for several years. Barry at M&S, which collects about 3 million items annually via its “shwopping” scheme, says it is only part of the answer. “The challenge is not getting clothing back: it’s what to do with it,” he says.

# data[].attributes.attachment_link.readable_text
Fashion shoppers spent about £3.5bn on Christmas party clothing this year - but 8 million of those sparkly items will be on their way to landfill after just one wear.

So-called fast fashion has ushered throwaway culture into the clothing business, with items so cheap they have become single-use purchases.

Last week, the young-fashion brand Boohoo had 486 dresses available online for less than £5. Many - like a black bandeau jersey bodycon number - were just £3.75, meaning the delivery charge cost more than the contents of the package. Rival Asos was offering 257 dresses and 2,141 different tops for less than £10.

Now, however, some fashion experts believe the party could be coming to an end for such disposable clothing and a backlash could be brewing, just as it has against takeaway coffee cups, plastic packaging and meat. Overall, the fashion industry as a whole is contributing more to climate change than the aeronautical and shipping industries combined. If trends continue, the industry could account for a quarter of the world's carbon budget by 2050.

In the past 15 years, global clothing production has doubled to meet demand. But it has left a trail of cast-offs, with more than half of fast fashion items thrown away in less than a year, according to the consultants McKinsey.

Disposing of clothing and household textiles costs the UK alone about £82m a year, according to a 2014 study by the government-backed recycling charity Wrap.

A little black dress from the young-fashion brand Boohoo is available for just £3.75.

In 2015, greenhouse gas emissions from textiles production globally totalled 1.2 billion tonnes of CO ₂ equivalent, according to a report by the industry-led Circular Fibres Initiative. This is more than the emissions of all international flights and maritime shipping combined.

Less than 1% of the material used to produce clothing globally is recycled into new clothing, with 12% recycled into other products such as insulation or mattress stuffing.

With a parliamentary committee set to produce a report on the issue in February and concerns about plastic pollution spurred by the BBC's Blue Planet documentary now turning to microfibres from clothing, industry insiders believe a backlash against fast fashion is on the way.

Mike Barry, director of sustainable business at Marks & Spencer, said: "The signals are [fashion is] on the same trajectory as plastics and forests and alternatives to meat. These were all underlying concerns that got through to the mainstream consumer.

"There is not an obvious consumer backlash against fast fashion today, but it would be a very brave business leader who didn't look into the next 12 to 18 months and say we are not heading there. Every business leader in the fashion industry knows that clothing will have the same level of questioning and challenging that food has had for years.

"It is going from being a business-to-business and risk-management issue behind the scenes to a consumer issue, in the same way as plastics and deforestation linked to palm oil have been in the last 12 months."

His hunch is backed up by research that suggests shoppers have already begun buying clothing less frequently.

In 2018, a third of consumers bought clothing once a month, down from 37% in 2016, while those buying every two or three months or less rose from 64% to 67%, according to the market research firm Mintel.

Samantha Dover, senior retail analyst at Mintel, says nearly half of consumers say they prefer to buy clothing from companies trying to reduce their impact on the environment, and that rises to 60% among under-24s.

"People are far more interested than before in knowing exactly where products are coming from and how they are being made," Dover says. She says consumers are still more interested in the price and style of the clothing than where and how it has been made, but that change is coming.

With that in mind, switched-on clothing companies are no longer just setting up a few racks of eco clothing in the corner of a store but considering how to make their entire range more sustainable.

The government-backed sustainable clothing action plan, whose signatories include Next, M&S, Ted Baker, Primark and Asos, has committed nine major retailers to reducing waste being sent to landfill, water use and carbon footprint by 15% by 2020.

The government also wants to introduce extended producer-responsibility schemes for household and commercial textiles and clothing, similar to those currently in place for batteries and electronics, which would force companies to pay for the recovery of waste. But it is a slow process, with consultation promised only by 2025.

Mary Creagh MP, chair of the parliamentary environmental audit committee, which has been investigating fashion industry sustainability, says the timetable is too slow.

"We have only got 12 years to tackle damaging climate change," she says. "We as consumers have to ask questions of brands. Brands have to make it part of what they do. These are massive companies run by some of the world's richest men. Someone is doing OK out of it."

Creagh adds that cheap fashion comes with a social as well as an environmental cost - with low-paid workers overseas unable to provide for their families. "We are not saying to people on a low income you can't buy cheap clothes. We are saying it is time that the cost should reflect the true cost of the minimum wage and decent working conditions and growing stuff without pesticides. It needs to be sustainable from top to bottom and we don't think the true cost is a £5 dress. That price is not being paid by us, it is being paid by someone else and the environment."

The Swedish fast-fashion specialist H&M is bringing its free mending service to the UK. Photograph: Simon Dawson/Reuters

Testifying to Creagh in parliament, Boohoo said that its £5 dresses were intended as loss leaders on which the company made no profit. It has also previously said that it takes sustainability seriously: 'The youthful demographic of our customer means that education is key and we use our huge reach across social channels globally to help share ideas of how a garment can be utilised in their wardrobe again and again. We are also working with reGAIN, a company that allows users to recycle unwanted clothing to prevent them from going to landfill."

Environmental campaigners say people who want to be more sustainable should choose quality clothes and make them last as long as possible by learning to repair or rework them. Buying secondhand or vintage clothing, considering renting outfits rather than buying, and washing garments less often at lower temperatures in a full machine can all help.

In many ways, younger people are ahead of the game, using trading sites such as Depop and Thredup to resell and upcycle clothing.

Even cleaning and mending services appear to be in vogue. Earlier this month, H&M brought its free mending service to the UK, making it a key part of a store revamp in Hammersmith. The brand is jumping on a bandwagon kickstarted by ethical brands such as Patagonia, which makes 40,000 repairs a year at its service centre in Reno, Nevada.

Meanwhile, the Los Angeles-based sports shoe cleaning specialist Jason Markk opened its first London store in March on Carnaby Street. It claims its "sneaker care technicians" have professionally cleaned more than 50,000 pairs of shoes since opening in the US in 2014.

Recycling is also becoming mainstream, with Primark set to launch a clothing take-back scheme in 2019, joining similar efforts by M&S and H&M that have been in operation for several years. Barry at M&S, which collects about 3 million items a year via its "shwopping" scheme, says it is only part of the answer. "The challenge is not getting clothing back: it's what to do with it," he says.

About 1.2 million tonnes of fibre from clothing is sold in the UK every year, about half of which is cotton, a third synthetic and the rest viscose or animal products such as leather. Reprocessing these fibres is tricky, according to Mark Sumner, a lecturer in sustainable fashion at the University of Leeds.

Most fabrics are a mix of different kinds of thread - such as cotton and Tencel for a T-shirt - and there are currently no commercial-scale facilities that can separate and reprocess such fabrics. Strong modern dyes are also extremely difficult to remove so, meaning that recycled threads cannot be recoloured.

Sumner says: "The more you process and play with them the worse they are and the quality reduces. "Recycled fibres through traditional routes are poor quality."

Sumner and Barry say the government and businesses need to fund research into how good-quality fibres can be reprocessed on a large scale to build a closed-loop industry. "If we can find a way of recycling, we can think about the UK being an exporter of those fabrics or rescuing our textile industry. There is an economic story there," Sumner says.

# data[].attributes.attachment_link.title
Is fast fashion giving way to the sustainable wardrobe?

# data[].attributes.attachment_link.description
Fashion shoppers spent about £3.5bn on Christmas party clothing this year - but 8 million of those sparkly items will be on their way to landfill after just one wear. So-called fast fashion has ushered throwaway culture into the clothing business, with items so cheap they have become single-use purchases.

# data[].attributes.body
M&S has traditionally always had the highest appeal among older shoppers, and GlobalData found in its Q3 2021 Consumer Survey that 50.0% of its shoppers in the UK are still over 55, however this figure is likely much lower than in previous years as it has been focusing on gaining wider relevance and attracting younger consumers. However, its market share declined from 6.9% in 2016 to 5.2% in 2019, and then dropped further to 4.1% in 2020 as it was heavily impacted by store closures throughout lockdowns as it has a high count of physical locations and its older customers were not yet accustomed to shopping online.

M&S still mainly appeals to older shoppers but is increasing its relevance among the young, Declining UK market share pre pandemic is finally starting to recover, with impressive performance in 2022, M&S is wisely choosing to revamp store estate by closing underperforming locations and transforming remaining sites into its new concept

# data[].attributes.attachment_link.provider_name
Market Research Reports & Consulting | GlobalData UK Ltd.

# data[].attributes.attachment_link.readable_text
Powered by

All the vital news, analysis, and commentary curated by our industry experts.

Profile of retailer's shopper base, key performance indicators, sales and market shares

M&S has traditionally always had the highest appeal among older shoppers, and GlobalData found in its Q3 2021 Consumer Survey that 50.0% of its shoppers in the UK are still over 55, however this figure is likely much lower than in previous years as it has been focusing on gaining wider relevance and attracting younger consumers. However, its market share declined from 6.9% in 2016 to 5.2% in 2019, and then dropped further to 4.1% in 2020 as it was heavily impacted by store closures throughout lockdowns as it has a high count of physical locations and its older customers were not yet accustomed to shopping online.

Scope

- M&S still mainly appeals to older shoppers but is increasing its relevance among the young, Declining UK market share pre pandemic is finally starting to recover, with impressive performance in 2022, M&S is wisely choosing to revamp store estate by closing underperforming locations and transforming remaining sites into its new concept

Reasons to Buy

- Gain a comprehensive knowledge on M&S business and develop a competitive advantage

- Investigate current trends in the clothing &footwear market to identify the best opportunities to exploit

- Analysis of key players in the clothing &footwear market segment in UK

Primark
Marks & Spencer
Amazon
Next
ASDA
H&M
JD Sportst
T.K.Maxx
SportsDirect.com
Matalan

Table of Contents

Table of Contents

Executive Summary

M&S Retail Shopper Profile

UK clothing & footwear shopper profile

Where UK consumers purchase clothing & footwear

Retailers used for other categories

M&S Overview

Snapshot of proposition

Key performance metrics

Global retail sales

Sales and Market Shares

UK apparel market

M&S market share

Top 10 retailers' market share

M&S share of shoppers

Top 10 retailers' market positioning map

Contacts

Frequently asked questions

reportstore@globaldata.com
Tel +44 20 7947 2745
Every customer's requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.

Sample Report

M&S, United Kingdom (UK) (Clothing and Footwear) Shoppers Profile, Market Share and Competitive Positioning was curated by the best experts in the industry and we are confident about its unique quality. However, we want you to make the most beneficial decision for your business, so we offer free sample pages to help you:

Assess the relevance of the report

Evaluate the quality of the report

Justify the cost

Download your copy of the sample report and make an informed decision about whether the full report will provide you with the insights and information you need.

Below is a sample report to understand what you are buying

See what our customers are saying

"The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers."
Business Intelligence & Marketing Manager, SAL Heavy Lift

"COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business."
Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.
Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that 'difficult-to-get' market data that others can't, as well as very diverse and complete consumer surveys.
Marketing Intelligence Manager, Portugal Foods

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I'm in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.
Head of Customer Insight and Research, Standard Chartered

"I know that I can always rely on Globaldata's work when I'm searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers' business and also gain insight to our unique industry"
Head of Consumer Sensory Insights, Givaudan

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise. The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don't) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don't have to search for news.
Senior Account Manager, TSYS

Go even deeper with GlobalData Intelligence Center

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at M&S, United Kingdom (UK) (Clothing and Footwear) Shoppers Profile, Market Share and Competitive Positioning in real time.

Access a live M&S, United Kingdom (UK) (Clothing and Footwear) Shoppers Profile, Market Share and Competitive Positioning dashboard for 12 months, with up-to-the-minute insights.

Fuel your decision making with real-time deal coverage and media activity.

Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.

# data[].attributes.attachment_link.title
M&S, United Kingdom (UK) (Clothing and Footwear) Shoppers Profile, Market Share and Competitive Positioning

# data[].attributes.attachment_link.description
Profile of retailer's shopper base, key performance indicators, sales and market shares M&S has traditionally always had the highest appeal among older shoppers, and GlobalData found in its Q3 2021 Consumer Survey that 50.0% of its shoppers in the UK are still over 55, however this figure is likely much lower than in previous years as it has been focusing on gaining wider relevance and attracting younger consumers.

# data[].attributes.headline
How Marks & Spencer has innovated its social media presence

# data[].attributes.subject
How Marks & Spencer has innovated its social media presence

# data[].attributes.attachment_link.title
How Marks & Spencer has innovated its social media presence

# data[].attributes.attachment_link.description
From virtual influencers to ‘magic coffee’ - here’s a look at how the venerable retailer has been experimenting with social media.

# data[].attributes.headline
M&S LAUNCHES MOST DIGITAL MARKETING CAMPAIGN TO DATE: “MUST-HAVES”

# data[].attributes.subject
M&S LAUNCHES MOST DIGITAL MARKETING CAMPAIGN TO DATE: “MUST-HAVES”

# data[].attributes.attachment_link.readable_text
New inspirational product campaign for M&S Clothing & Home across online, mobile and in-store

Focus on digital channels including VOD, Google Advertising and Instagram

M&S's Clothing & Home Marketing team has launched a Digital First campaign that celebrates and shares with customers the Must-Have wardrobe essentials for the coming season across Womenswear, Menswear, Kidswear, Home and Beauty. Must-Haves will launch with a high impact execution across multiple channels including national press and digital out of home.

This is the first major Clothing & Home campaign following the restructure of M&S's Marketing function and represents the start of a new conversation with customers about M&S Clothing & Home products, one that is more seasonally relevant, more inspirational and more agile in utilising digital channels to target customers.

M&S's Marketing team is using digital channels to help achieve the Clothing & Home business' aims of moving to one third of sales online and growing customer share of busy mums and dads. TV advertising will be exclusively through video on demand services, allowing more effective customer targeting and M&S is using Google Inventory Advertising, so customers can easily search what is in a local store when they're nearby. Following M&S's success as one of the first retailers to utilise Shoppable Instagram, the team will continue to develop this channel through the campaign, using the highly popular channel to highlight Must-Have products - from the Must-Have satin blouse to the Must-Have checked blazer. The campaign will also use Shoppable Facebook with inspirational videos and clear links for customers to purchase.

Nathan Ansell, Clothing & Home Marketing Director at M&S said, "M&S is using new ways of engaging with our customers and the digital focus with "Must-Haves" is the result of customer insight, collaboration across our business and creative thinking, it's executed across a highly targeted range of digital channels and excitingly is our most digital campaign to date.
"Must-Haves is all about product and is designed to show M&S as a stylish and affordable choice for high-quality, seasonal wardrobe essentials - with so much more to come we can't wait to hear what our customers think."
The Must-Haves campaign will touch every element of the M&S Clothing & Home experience and is supported by wider changes this Autumn including better optimisation of online product pages for mobile and clearer navigation in store. M&S's Marketing team has separated Visual Merchandising into a specialist team to ensure the most inspirational experience in store for customers and the result of this will be evident in how the campaign is laid out in shops.

Must-Haves builds on the team's ongoing and strategic "Love it for Less" campaign that highlights great value products across M&S. Must-Haves will run throughout the season with exciting elements to come including Instagram TV and a Facebook Must-Haves photo frame, as well as additional campaign plans yet to be announced.

Ends
Notes to Editors Credits
Project name: Autumn 18 - 'MUST HAVES'

Client: Marks & Spencer, Nathan Ansell, Director of Marketing C&H

Zoe Hayward, Head of Marketing C&H

Louise Bancroft, Marketing Manager C&H

Agency: Grey London

Creative Director: Luke Williamson

Art director: Lisa Comerford

Agency producer: Leah Stolerman, James Plaxton

Creative producer: Claire Ramasamy

Planner: Sarah Oberman

Account management: Katie Jackson, Sophie Fredheim, Alice Lowden, Emilie Jenner

Media agency: Mindshare

Media planner: Richard Tudor

Production company: The Production Factory

Director: Mark Gostick and Luke Williamson,

Editor: Tim Goddard at Town Productions

DOP: Mark Gostick

Post-production: GPS

# data[].attributes.attachment_link.title
M&S LAUNCHES MOST DIGITAL MARKETING CAMPAIGN TO DATE: "MUST-HAVES"

# data[].attributes.attachment_link.description
M&S is a leading British retailer bringing quality, great value food, clothing and homeware to millions of customers around the world

# data[].attributes.headline
How Marks & Spencer Is Using Instagram Strategy to Attract Millennials

# data[].attributes.subject
How Marks & Spencer Is Using Instagram Strategy to Attract Millennials

# data[].attributes.attachment_link.readable_text
The hunt for the perfect Easter egg is over! an Easter egg... This is a BBC Good Food award-winning, Fudgy Easter Sundae Egg, topped with chocolate-covered pretzels, fudgy and caramel pieces and a chocolate straw. It's the best milk chocolate egg in Britain!

# data[].attributes.attachment_link.description
The hunt for the perfect Easter egg is over! an Easter egg... This is a BBC Good Food award-winning, Fudgy Easter Sundae Egg, topped with chocolate-covered pretzels, fudgy and caramel pieces and a chocolate straw. It's the best milk chocolate egg in Britain!

# data[].attributes.headline
#Backlash - MOM AND DUD M&S customers all say the same thing after store releases ‘Mom Jeans’

# data[].attributes.subject
#Backlash - MOM AND DUD M&S customers all say the same thing after store releases ‘Mom Jeans’

# data[].attributes.attachment_link.readable_text
M&S have named a new range "Mom Jeans" - angering customers with the US phrasing.
Some are threatening to boycott the store, fed up with the creeping Americanisation of our language.

One raged over the £39.50 jeans: "I saw this abomination today. Marks & Spencer, I kid you not - that bastion of Britishness.

"I am most insulted.

"When did we start calling our female parents 'mom'? It's 'mUm'. I'm writing to head office."

Another considered launching a petition, and fumed: "They won't get my custom using American terminology."

Read More on Marks and Spencer

According to brand guru Marcel Knobil, 58, the phrase "feels unfaithful to the M&S DNA".

He said it was a "quintessentially British brand", adding: "When you walk through a Marks & Spencer, you aren't going to see a sign saying 'candy'."

Made popular across the Atlantic in the 90s, "mom jeans" are high-waisted with a baggy fit.

TV's Holly Willoughby has appeared in an ad for them, posting online: "You can't go wrong with a classic mom jean!" It is the latest irritating US phrase to seep into our language, after the likes of "soccer", "reach out", "my bad" and, when ordering coffee, "can I get . . . ?"

M&S defended its use, saying it is "a well-known style and well-used term across the fashion industry".

It added: "We have stuck with it so our customers will recognise it."

# data[].attributes.attachment_link.title
M&S customers all say the same thing after store releases 'Mom Jeans'

# data[].attributes.attachment_link.description
M&S have named a new range "Mom Jeans" - angering customers with the US phrasing. Some are threatening to boycott the store, fed up with the creeping Americanisation of our language. One raged ...

# data[].attributes.headline
M&S plan U-turn after backlash from parents over plastic packaging for their school uniform range

# data[].attributes.subject
M&S plan U-turn after backlash from parents over plastic packaging for their school uniform range

# data[].attributes.headline
M&S plans more ‘savvy’ social media marketing approach

# data[].attributes.subject
M&S plans more ‘savvy’ social media marketing approach

# data[].attributes.attachment_link.readable_text
Marks & Spencer plans to take a more "savvy" approach to social media marketing, integrating it more widely into its ad campaigns in order to build on its investment in multi-channel and strong performance in mobile and online commerce over Christmas.

The retailer is launching a new e-commerce platform in the spring and investing behind the scenes in logistics and fulfilment to help drive up online sales, which grew 23 per cent in its third quarter. A spokesperson told Marketing Week that social media can help support this growth and it is planning further customer participation on sites such as Facebook and Twitter to boost engagement.

"Christmas was a good example of how our campaigns can be much more integrated and we can be much more savvy in social media. We want to continue that," she adds.

M&S has been shifting its marketing approach to digital first starting with the "Leading Ladies" campaign, which launched on Facebook in September. It's Christmas ads, "Believe in Magic and Sparkle" also debuted online and the retailer ran a social media campaign that asked customers to name the dog seen in the TV spot.

M&S said that for the Christmas campaign, its social media activity reached more than 23 million people within the first 24 hours and it received 300,000 new Facebook fans as a result. It is continuing its attempts to engage with customers, currently running a campaign to name new characters for its popular Percy Pig range of sweets..

"Customer participation has been very successful for us and we want to continue that. Use of social media is increasingly important because customers respond to it incredibly well," she said.

M&S had a mixed Christmas, with like-for-like sales at its food business up 1.6 per cent in the 13 weeks to 28 December but general merchandise, including clothing, falling 2.1 per cent. Nevertheless, M&S said it is making some headway, with Kantar figures for the 12 weeks to 24 November showing "small market share growth" in womenswear for the first time in three years and a good reception from the fashion press for its Spring/Summer line.

The retailer said it saw improvements in sales in "key strategy areas", with dress sales up 110 per cent and coats increasing by a third. The spokesperson said customers also "traded up" on quality and style in areas such as lingerie, helped by the Rosie for Autograph range, which featured in its Christmas advertising.

# data[].attributes.attachment_link.title
M&S plans more 'savvy' social media marketing approach

# data[].attributes.attachment_link.description
Marks & Spencer plans to take a more "savvy" approach to social media marketing, integrating it more widely into its ad campaigns in order to build on its investment in multi-channel and strong performance in mobile and online commerce over Christmas.

# data[].attributes.body
https://www.thesun.co.uk/money/25515552/full-list-mands-marks-and-spencer-closing-stores/

https://www.bbc.com/news/uk-england-cambridgeshire-68342326

# data[].attributes.headline
Top 12 clothing and home supplier factories - 2023

# data[].attributes.subject
Top 12 clothing and home supplier factories - 2023

# data[].attributes.body
The advert was seen as insensitive towards the current war going on between Palestine and Israel (news article linked above)

Albeit a Christmas ad, therefore a major focus on their food instead of their clothing, this could have still damaged their reputation and hindered sales in their clothes department

# data[].attributes.headline
Many other brands available on the M&S website (1)

# data[].attributes.subject
Many other brands available on the M&S website (1)

# data[].attributes.attachment_link.readable_text
M&S, for years an icon of the British high street, has been the centre of several sweatshop scandals in the last few years. But what were these accusations, and have they improved?

Exposure:

In 2016, reporters in Turkey allegedly discovered Syrian refugees working for below minimum wage in factories producing M&S clothes. According to a 2016 BBC Panorama documentary looking at sweatshop scandals, factories in Turkey producing clothes for a variety of UK brands including M&S were exploiting Syrian refugees.

This was not the first time M&S was at the receiving end of such an accusation. In 1999, they faced accusations of using Indonesian children to produce clothes. Children allegedly earnt just 50p for 10 hour working days in factories around Jakarta. Then, M&S denied any involvement, claiming a lack of evidence it was buying from such factories.

In 2010, this time in India, they were in trouble again. The accusation was that workers hired through middlemen received as little as 26p an hour in their factories, while Glass Clothing tailors are paid at least 2x the national minimum wage. This time, M&S had to admit that the use of overtime had been 'excessive', but promised to deal with it.

According to the Telegraph, in 2016 the company was employing workers as young as 15 for 12 hour days ironing garments. The fact that these workers were refugees only worsened the situation. According to one refugee - "If anything happens to a Syrian, they will throw him away like a piece of cloth."

The refugees apparently received far lower than the Turkish minimum wage, paid to them in cash by a middleman.

Response:

"We take these allegations very seriously, and if we find that the integrity of the brand has been brought into disrepute we will deal with it," - The Guardian, 1999

"Excessive overtime and not paying workers the correct overtime rate can also be an issue in Gurgaon. This is one of the reasons we have a large team on the ground in Delhi and among the strictest ethical standards in the world ." - The Guardian, 2010

" Ethical trading is fundamental to M&S. All of our suppliers are contractually required to comply with our Global Sourcing Principles, which cover what we expect and require of them and their treatment of workers." - Business & Human Rights Resource Centre, 2016

Again and again, the company has issued statements such as these. They always claim to hold ethical trading as the highest priority. However, the evidence seemed to contradict their claims. In 2016, they promised a serious effort to improve, but it would remain to be seen if their actions mirrored their words.

Have They Changed?

Well, sort of. As recently as January 2019, M&S was at the centre of yet another sweatshop scandal. This time, the location was Bangladesh. Other aspects of the story were depressingly similar.

Bangladesh, where the most recent M&S scandal took place.

According to the Guardian, M&S, Mothercare and Tesco were using the factory to produce Spice Girls T-shirts for a Comic Relief fundraiser. Allegedly, mainly female workers receive just 35p an hour. Ironically, the campaign's intention was to raise awareness of how women earn less than men.

Employers at the Interstoff Factory in Gazipur also allegedly verbally abused the machinists. Some claimed they were called "daughters of prostitutes" if they failed to meet requirements they called "impossible".

Allegedly, women had to work even if unwell or pregnant. Fainting in summer was common. Overcrowding was a problem and shifts could be up to 16 hours long. Workers had the target of sewing 2,000 garments a day, but it took over a week to earn enough to purchase just one, priced at £19.40.

M&S claimed they would investigate the allegations but Interstoff flat out denied them. M&S promised a compliance manager would visit the factory as soon as possible, and that they had already worked with the factory on projects dealing with gender equality and healthcare.

Plan A - An Answer

This being the fourth of the sweatshop scandals M&S has been involved in, it seems they are in dire need of improvement of factory standards. Plan A (2007), a sustainability measure, is the company's answer. Plan A 2025 is the update from 2017, in which they introduced a greater focus on human rights and transparency.

The Corporate Human Rights Benchmark declared them the best Food & Apparel Brand in their 2017 report. According to their internal 2019 Plan A performance update, M&S are 'on target' with their transparency goals.

However, although the CHRB placed them at the top, they were only in the 60-69% band for human rights standards. The 2019 sweatshop scandal also casts a shadow over the company's achievements and underlines the continuing need for improvement.

Glass Clothing discloses information about our tailors right here on this website, so that you can know who is making your clothes. People before profit, always.
Read about how Victoria's Secret fares in comparison

# data[].attributes.attachment_link.title
Marks and Spencer's and Sweatshop Scandals

# data[].attributes.attachment_link.description
M&S, for years an icon of the British high street, has been the centre of several sweatshop scandals in the last few years. But what were these accusations, and have they improved? In 2016, reporters in Turkey allegedly discovered Syrian refugees working for below minimum wage in factories producing M&S clothes.

# data[].attributes.headline
Interactive video (almost TikTok like) with comments on homepage of the website

# data[].attributes.subject
Interactive video (almost TikTok like) with comments on homepage of the website

# data[].attributes.attachment_caption
This is to be more trendy, alongside the inclusive love your boobs campaign

# data[].attributes.headline
Keeping up to trend with the loose fit trousers instead of a skinny fit

# data[].attributes.subject
Keeping up to trend with the loose fit trousers instead of a skinny fit

# data[].attributes.attachment_caption
M&S is great for shopping if a parent. There are many different options to choose from in terms of favourite characters

# data[].attributes.attachment_caption
School uniform is a massive market in M&S clothing. Many school kids will be taken to M&S for new uniform that doesn't include a school emblem. This is because the uniform is on the cheaper end, with easy to iron options and durable

# data[].attributes.attachment_caption
If a child and/or parent prefers not opt in for clothing with favourite characters, there is a wide array of trendier clothing very reminiscent of the denim campaign seen in the Men's and Women's sections.

# data[].attributes.attachment_caption
This further emphasises the brand passion and push for this market and in terms on inclusivity. This instead of this tab being under the women's section

# data[].attributes.attachment_link.title
Top Marks & Spencer Group Competitors and Alternatives | Craft.co

# data[].attributes.attachment_link.description
Marks & Spencer Group’s main competitors include Debenhams, John Lewis Partnership, Next and Zara. Compare Marks & Spencer Group to its competitors by revenue, employee growth and other metrics at Craft.

# data[].attributes.body
M&S operates in a highly competitive market, facing competition from online retailers like Amazon and fashion retailers such as Zara and H&M. These competitors offer trendy and affordable clothing, which can be a challenge for M&S to attract customers.

# data[].attributes.attachment_link.readable_text
Marks and Spencer's top competitors include ZARA, H&M and Primark.

Marks and Spencer VS ZARA

ZARA is the biggest rival of Marks and Spencer. ZARA is headquartered in A Coruna, Galicia, and was founded in 1974. Like Marks and Spencer, ZARA also operates in the Fashion, Apparel & Accessories space. ZARA generates 175% the revenue of Marks and Spencer.

Marks and Spencer VS H&M

H&M is Marks and Spencer's #2 competitor. H&M is a Product/Brand/Service company that was founded in New York City, New York in 1947. Like Marks and Spencer, H&M also works within the Fashion, Apparel & Accessories sector. H&M has 77,684 more employees vs. Marks and Spencer.

Marks and Spencer VS Primark

Primark has been one of Marks and Spencer's top competitors. Primark's headquarters is in London, England, and was founded in 1969. Primark operates in the Fashion, Apparel & Accessories industry. Primark generates 22% of Marks and Spencer's revenue.

Trending News for Marks and Spencer and Marks and Spencer's Competitors

Frequently Asked Questions about Marks and Spencer

1. Who are Marks and Spencer's top competitors?
Marks and Spencer's top 3 competitors are ZARA, H&M, Primark.

2. Who is similar to Marks and Spencer?
ZARA is the most similar to Marks and Spencer. H&M and Primark are also similar to Marks and Spencer.

Are Marks and Spencer and ZARA competitors?
Yes, ZARA is one of Marks and Spencer's top competitors.

# data[].attributes.attachment_link.title
Marks and Spencer Competitors and Alternatives

# data[].attributes.attachment_link.description
Marks and Spencer's top competitors include ZARA, H&M and Primark. See the full list of Marks and Spencer alternatives and competitive updates on Owler, the world's largest community-based business insights platform.

# data[].attributes.attachment_link.title
Autumn is here and it’s anything but ordinary. Shop the collection now. | | M&S CLOTHING & HOME

# data[].attributes.headline
M&S targets youth market with major move into live shopping

# data[].attributes.subject
M&S targets youth market with major move into live shopping

# data[].attributes.attachment_link.readable_text
With its turnaround firmly on track, M&S has moved into the live shopping space that could see its appeal to a younger demographic rising dramatically.

Thought to be a first for a major UK retailer, M&S has launched a live shopping service from today (Friday) that will use influencers to model pieces over a live video stream.

The service, facilitated by M&S software partner LiSA, allows any of the 13.5 million customers that visit M&S.com each week to join a live broadcast. Hosted by an M&S expert, they can hear more about the ranges they're browsing, ask questions through the live chat function, view product demonstrations, and importantly, buy the products as they watch.

M&S said it hoped to make the service "more relevant, more often" with shoppers. And the new feature will be key in promoting its widening stable of fashion brands, which now includes Hobbs, Joules, Phase Eight and White Stuff.

Following three "successful" trial events, the first broadcast (Lingerie, Women's, Kidswear, and Activewear) took place Friday at 12.30.

M&S's entry into the live shopping space is part of a wider plan to sell more clothes online and attract younger shoppers after its reported success selling fashion during the Christmas period. The move is also expected to attract more visits to its website.

Stephen Langford, director of M&S, said: "Live Shopping on M&S.com is the latest in a wave of new initiatives we've introduced to improve our customer experience. It's a global trend that responds to how customers are using social media - we all know how much more we're scrolling and engaging with video content - at home, or on the go."

He added: "Live shopping puts our experts front and centre and gives them the ideal platform to share the M&S point of difference - in terms of both quality, design and innovation features."

While livestream shopping is still in its infancy in the UK, the format is projected to be worth $480 billion in China this year, according eMarketer, and $11 billion in the US, according to Foresight Research.

However, with tech giants Facebook, Amazon, TikTok, Twitter, and Pinterest all entering the livestream shopping arena, the sector's appeal should rocket. According to research by McKinsey, it will account for between 10% and 20% of online shopping worldwide by 2026.

In the UK, live shopping took off on TikTok late last year with retailers using it to sell Black Friday deals by connecting with the social media app's mostly teenage audience.

# data[].attributes.attachment_link.title
M&S targets youth market with major move into live shopping

# data[].attributes.attachment_link.description
News distribution : With its turnaround firmly on track, M&S has now moved into the live shopping space that could see its appeal to a younger demographic rising dramatically. (#1373024)

# data[].attributes.headline
Marks and Spencer (M&S) Marketing Mix (4Ps)

# data[].attributes.subject
Marks and Spencer (M&S) Marketing Mix (4Ps)

# data[].attributes.attachment_link.readable_text
Before we dive deep into the Marketing Mix, let's get the business overview of Marks & Spencer (M&S). Marks & Spencer is a British multinational retailer headquartered in London, United Kingdom. It was founded in 1884 by Michael Marks and Thomas Spencer and has since grown to become one of the largest retailers in the UK.

Marks & Spencer operates in two primary segments: Food and Clothing & Home. The food segment offers a wide range of products, including groceries, fresh produce, ready meals, and bakery items. The Clothing & Home segment provides a variety of clothing and home goods, such as clothing for men, women, and children, homeware, furniture, and beauty products.

Marks & Spencer has a strong presence in the UK, with over 950 stores nationwide and an online store. The company also has a growing international presence, with stores in over 50 countries. The company's revenue for the financial year 2021 was $14.3 billion.

Marks & Spencer is known for its commitment to sustainability and ethical sourcing. The company has set ambitious targets to reduce its environmental impact, including a goal to become carbon-neutral by 2035. It also works closely with suppliers to ensure products are produced ethically and sustainably.

Here is the Marketing Mix for Marks and Spencer (M&S)

A marketing mix, also known as the 4Ps of marketing, is framework marketers use to develop and implement effective marketing strategies. The concept helps businesses identify and optimize the key components necessary to promote and sell their products or services. The 4Ps of the marketing mix are Product, Price, Place, and Promotion.

In addition to the traditional 4 Ps, marketers have expanded their strategies by incorporating additional elements (People, Process & Performance) to help them better understand and reach their target audiences. But we will focus on the 4Ps as they are the foundation of any marketing strategy. In this article, we will understand the marketing mix of Marks and Spencer (M&S).
What is a Marketing Mix? What are the 4Ps of Marketing?
Product

1. Product range : Marks & Spencer offers various products, including clothing for men, women, and children, beauty products, food and beverages, and home furnishings. Their product range is designed to cater to different customer segments and preferences, ensuring that they meet the needs and wants of their target market.

2. : One of the key differentiators for Marks & Spencer is their focus on high-quality products. The company has built a reputation for providing customers with well-made, durable, and stylish products. This commitment to quality helps create customer trust and loyalty.

3. : Marks & Spencer has a strong brand presence, with the company's name and logo being synonymous with quality and reliability. The company works hard to maintain this image through consistent branding across all its product lines and marketing materials.

4. Innovation : Marks & Spencer continually invests in research and development to bring new products to market and improve existing offerings. This includes staying up to date with current trends and customer preferences, as well as investing in sustainable and ethical sourcing practices.

5. : Marks & Spencer emphasizes attractive and functional packaging that aligns with its brand image. This includes using sustainable materials and ensuring that their packaging designs are visually appealing, easy to use, and informative for the customer.

6. Product life cycle management : Marks & Spencer regularly evaluates the performance of its products, ensuring that they meet customer expectations and market demand. This allows the company to decide when to phase out underperforming products and introduce new ones.

Price

1. Cost-based pricing : Marks & Spencer considers the cost of producing their products, including raw materials, labor, and overhead expenses. By accounting for these costs, the company can set a price that ensures profitability while remaining competitive.

2. Value-based pricing : Given Marks & Spencer's reputation for offering high-quality products, their pricing strategy also considers customers' perceived value of their products. The company aims to justify the premium pricing of its products through the quality, durability, and innovation they offer.

3. Competitor analysis : Marks & Spencer closely monitors competitor pricing to ensure its products are positioned appropriately in the market. While they may not always be the lowest-priced option, the company aims to offer a strong value proposition that differentiates them from competitors.

4. Market segmentation : Marks & Spencer offers products at various price points to cater to different customer segments. For instance, they have both luxury and more affordable product lines, which enables them to appeal to a wider range of customers while maintaining their premium brand image.

5. Promotions and discounts : Marks & Spencer occasionally offers promotions and discounts to drive sales, attract new customers, and clear out excess inventory. These pricing tactics can also help to increase customer loyalty and encourage repeat purchases.

6. Price adjustments : The company regularly reviews its pricing strategy to account for changes in the market, including fluctuations in raw material costs, currency exchange rates, and competitor pricing. This ensures that Marks & Spencer remains competitive while maintaining profitability.

Marks and Spencer (M&S) SWOT Analysis
Place

1. Store locations : Marks & Spencer operates a network of physical stores in prime locations, such as high streets, shopping centers, and retail parks. These strategically chosen locations ensure high footfall and visibility for the brand, making it convenient for customers to shop. As of 2021, there were 1,035 Marks and Spencer stores in the UK and 452 other stores in the world.

2. Online presence : Marks & Spencer's robust e-commerce platform allows customers to browse and purchase products from their homes. The online store helps the company reach a broader customer base, including those who may not have easy access to a physical store.

3. International presence : Marks & Spencer has expanded its footprint beyond the UK to several international markets, including Europe, Asia, and the Middle East. This global presence helps the company diversify its revenue streams and cater to customers' needs in different regions.

4. Store formats : The company operates various store formats, including department stores, standalone food stores, and outlet stores, to cater to different customer needs and preferences. This flexibility in store formats allows Marks & Spencer to optimize its retail presence according to local market conditions.

5. Distribution centers and logistics : Marks & Spencer's network enables efficient supply chain management. By optimizing logistics, the company can ensure that products are readily available in stores and for online orders, minimizing stockouts and providing a seamless shopping experience for customers.

6. Partnerships and collaborations : Marks & Spencer collaborates with other retailers, suppliers, and third-party service providers to expand its distribution network and improve its supply chain efficiency. These partnerships help the company reach more customers and maintain a competitive edge in the market.

Promotion

1. Advertising : Marks & Spencer invests in various advertising channels, such as print, digital, television, and outdoor, to create brand awareness and showcase its products to a wide audience. The company ensures its advertising campaigns reflect its brand image and convey the desired message to the target market.

2. Public Relations (PR) : The company engages in PR activities to maintain a positive brand image and manage its reputation. This includes press releases, media relations, and involvement in community initiatives, such as charitable activities and sustainability programs, which help build goodwill and strengthen the brand's image.

3. Social Media : Marks & Spencer has a strong presence on popular social media platforms like Facebook, Instagram, Twitter, and Pinterest, sharing updates on new product launches, promotions, and other relevant content. Social media allows the company to engage directly with customers, receive feedback, and promptly address any concerns or queries.

4. Content Marketing : The company uses content marketing to educate and inform customers about its products, industry trends, and lifestyle topics. This includes blog posts, articles, and videos, which promote their products and position Marks & Spencer as a knowledgeable and trustworthy source of information.

5. In-store promotions : Marks & Spencer leverages its physical store locations to run in-store promotions, such as special offers, discounts, and seasonal sales. These promotions encourage customers to visit the store and make impulse purchases, driving sales and increasing footfall.

6. Email marketing : Marks & Spencer uses email marketing campaigns to inform customers about new product launches, promotions, and other news. This targeted form of communication allows the company to reach a specific audience, encourage repeat purchases, and maintain customer loyalty.

7. Loyalty programs : Marks & Spencer has a loyalty program called "Sparks" that rewards customers for their purchases, reviews, and engagement with the brand. This program helps in building customer loyalty and encouraging repeat business.

# data[].attributes.attachment_link.title
Marks and Spencer (M&S) Marketing Mix (4Ps)

# data[].attributes.attachment_link.description
A marketing mix, also known as the 4Ps of marketing, is framework marketers use to develop and implement effective marketing strategies. In this article, we will understand the marketing mix (4Ps) of Marks and Spencer (M&S).

# data[].attributes.attachment_link.readable_text
M&S targets individuals who value quality, reliability, and classic styles. Its target audience comprises men, women, and children who want to wear classic and timeless clothing that is of high quality. M&S segments its audience based on age, gender, and psychographics, such as lifestyle and values.

How ZARA , H&M and M&S have captured fashion market by distinguishing the following :

1. Target Audience: Each brand has a different target audience. Zara targets fashion-conscious individuals who are looking for the latest trends. H&M targets individuals who are interested in fashion, but want to remain within a budget. M&S targets individuals who value quality, reliability, and classic styles. Each brand's target audience reflects its overall brand identity and influences its marketing and product development strategies.

2. Design Philosophy : Each brand has a unique design philosophy that influences its product offerings. Zara's design philosophy revolves around creating exclusive and high-end designs with a focus on quality and craftsmanship. H&M is more focused on producing fast fashion with a shorter production cycle and a constant stream of new designs that reflect the latest fashion trends. M&S's design philosophy centers around classic, timeless styles that prioritize quality and longevity.

3. Brand Positioning : Each brand has a different brand positioning strategy that sets it apart from its competitors. Zara positions itself as a fast-fashion brand that produces trendy and affordable clothing for fashion-forward individuals. H&M positions itself as a sustainable fashion brand that produces trendy and affordable clothing for fashion-conscious individuals. M&S positions itself as a classic and reliable fashion brand that produces high-quality clothing for individuals who value durability and longevity. Each brand's positioning strategy reflects its overall brand identity and influences how consumers perceive the brand.

M&S targets individuals who value quality, reliability, and classic styles. Its target audience comprises men, women, and children who want to wear classic and timeless clothing that is of high quality. M&S segments its audience based on age, gender, and psychographics, such as lifestyle and values.

How ZARA , H&M and M&S have captured fashion market by distinguishing the following :

1. Target Audience: Each brand has a different target audience. Zara targets fashion-conscious individuals who are looking for the latest trends. H&M targets individuals who are interested in fashion, but want to remain within a budget. M&S targets individuals who value quality, reliability, and classic styles. Each brand's target audience reflects its overall brand identity and influences its marketing and product development strategies.

2. Design Philosophy : Each brand has a unique design philosophy that influences its product offerings. Zara's design philosophy revolves around creating exclusive and high-end designs with a focus on quality and craftsmanship. H&M is more focused on producing fast fashion with a shorter production cycle and a constant stream of new designs that reflect the latest fashion trends. M&S's design philosophy centers around classic, timeless styles that prioritize quality and longevity.

3. Brand Positioning : Each brand has a different brand positioning strategy that sets it apart from its competitors. Zara positions itself as a fast-fashion brand that produces trendy and affordable clothing for fashion-forward individuals. H&M positions itself as a sustainable fashion brand that produces trendy and affordable clothing for fashion-conscious individuals. M&S positions itself as a classic and reliable fashion brand that produces high-quality clothing for individuals who value durability and longevity. Each brand's positioning strategy reflects its overall brand identity and influences how consumers perceive the brand.

Personal Values and Beliefs: A person's core values, beliefs, and principles play a significant role in shaping their identity. These can be influenced by family upbringing, personal experiences, and

# data[].attributes.attachment_link.description
How ZARA , H&M and M&S have captured fashion market by distinguishing the following : Target Audience: Each brand has a different target audience. Zara targets fashion-conscious individuals who are looking for the latest trends. H&M targets individuals who are interested in fashion, but want to remain within a budget.

# data[].attributes.headline
How Marks & Spencer Is Using Instagram Strategy to Attract Millennials

# data[].attributes.subject
How Marks & Spencer Is Using Instagram Strategy to Attract Millennials

# data[].attributes.headline
MARKS & SPENCER ANNOUNCES TECHNOLOGY TRANSFORMATION PROGRAMME

# data[].attributes.subject
MARKS & SPENCER ANNOUNCES TECHNOLOGY TRANSFORMATION PROGRAMME

# data[].attributes.attachment_link.readable_text
As part of its five-year transformation plan, M&S has today announced a new Technology Transformation Programme that will enable it to become a digital-first business and deliver an improvement in customer experience. It is designed to create a more agile, faster and commercial Technology function that will work with the business to deliver growth.

Following an extensive review of M&S's technology capabilities, changes are being made to deliver technology that brings real value, at pace, to its business and customers. These changes include:

The creation of a new Technology Operating Model, which will drive significant efficiencies in how M&S exploits new technology, including the adoption of industry agile methods, effective from 1st March 2018.

The appointment of Tata Consultancy Services (TCS) - one of the world's leading technology companies - as M&S's principal technology partner.

A simplification and consolidation of M&S's technology supplier base. Core supplier services will transfer directly to TCS and the day-to-day relationship and project management of specialist suppliers will move under the control of TCS.

The Technology Transformation Programme will deliver annual efficiencies of c.£30m by 2021/22 and drive clearer accountabilities and a more customer centric approach to technology services. There is a one-off cost to implement of c. £25 million.

Steve Rowe, M&S CEO said: "We are committed to transforming M&S for our colleagues, customers and shareholders by delivering digital-first retailing across our stores and offices. Technology plays a huge role in this transformation - and having the right partners and model will enable us to be more agile, flexible and responsive. Through our Technology Transformation Programme our business will be faster, simpler and more focused on achieving a seamless customer experience."

As a result of the new Technology Operating Model, c.250 existing M&S Technology roles will transfer under TUPE to become TCS roles. Individual conversations will take place with around 30 individuals whose functions will be carried out differently in the future. M&S will retain a smaller, more technical and commercially focused team that will lead and drive technology to support the business.

A TUPE information and consultation process will commence with BIG, M&S's employee representative group, on 16th January 2018.

- ENDS -
Notes to Editors: Making M&S Special
In November 2017 Marks & Spencer set out a transformation programme for the business concentrating on Restoring the Basics, Shaping the Future and Making M&S Special.

Under this transformation programme, Making M&S Special, M&S has to date announced:

A slowdown in the Simply Food store opening programme

An acceleration of the UK store estate programme

The sale and franchise of its retail business in Hong Kong and Macau

The announcement of a new Technology Transformation Programme

For further information, please contact:
Corporate Press Office:+44 (0)20 8718 1919

# data[].attributes.attachment_link.title
MARKS & SPENCER ANNOUNCES TECHNOLOGY TRANSFORMATION PROGRAMME

# data[].attributes.attachment_link.description
M&S is a leading British retailer bringing quality, great value food, clothing and homeware to millions of customers around the world

# data[].attributes.body
Plan A Shwopping | M&S (marksandspencer.com)

# data[].attributes.headline
Marks and Spencer Group plc Sustainability Report 2023

# data[].attributes.subject
Marks and Spencer Group plc Sustainability Report 2023

# data[].attributes.body
Say Pants to the Tax | Marks & Spencer (marksandspencer.com)

# data[].attributes.attachment_link.readable_text
COUNTRY

the Netherlands
SYMBIOTIC FUTURES is a vision of the future in which we investigate the language of trees through fungi and live in symbiosis with the forest. The designed tools would make it possible to listen to communication between trees. Understanding communication can help us improve environmental health.
The Anthropocene is the current era in which we humans have a dominant influence on the climate and the environment. The disconnection of people from the rest of nature is an essential part that contributes to the destruction of our planet. This disconnect has to do with the concept we have of nature. This project explores a different concept / story through Speculative Design. A story in which we live in nature and explore the communication between trees to improve our environmental health.

Trees are associated with fungi. Fungi have networks of long threads hidden underground called mycelium. These networks form the internet of the forest and allow trees to communicate with each other. We investigate:
1. Which trees communicate?
2. What do they communicate?
3. What does that mean?

Tool # 1 is attached to trees. It shows which trees are connected and whether the tree is sending or receiving information.

Tool # 2 is connected to the mycorrhizal mycelium hotspot that is connected to the trees that communicate. The detected signals are converted into a soundscape that can be heard and recorded.

‏‏‎ ‎

# data[].attributes.attachment_link.description
COUNTRY the Netherlands SYMBIOTIC FUTURES is a vision of the future in which we investigate the language of trees through fungi and live in symbiosis with the forest. The designed tools would make it possible to listen to communication between trees. Understanding communication can help us improve environmental health.

# data[].attributes.attachment_link.readable_text
Strong trading results

Proﬁt before tax & adjusting items of £482.0m (2021/22: £522.9m, including £59.8m UK business rates relief)

Statutory profit before tax of £475.7m (2021/22: £391.7m)

Clothing & Home sales1 up 11.5% to £3.72bn; Store sales up 14.9%, online up 4.8%; Strong growth in Click & Collect

Clothing & Home adjusted operating profit £323.8m (2021/22: £330.7m, including £35.2m rates relief)

Food sales up 8.7% to £7.22bn. Strong growth across core categories, hospitality and franchise

Food adjusted operating profit £248.0m (2021/22: £277.8m, including £24.6m rates relief)

Ocado Retail share of loss £29.5m (2021/22: share of profit £13.9m); capacity for future growth

International constant currency sales up 11.2%; adjusted operating profit £84.8m (2021/22: £73.6m)

Reshaping M&S to deliver long term growth

Clothing & Home delivering improved style perceptions and a sustained leading value position

Food volume outperforms market; reflecting product innovation and value investment

Ocado Retail reset underway; restoring leading service credentials and deeper collaboration with M&S

Structural cost reduction programme delivering; over £150m of savings planned for FY24

Accelerating store rotation; 8 full-line and 10 Food stores opening in FY24

Progress on supply chain modernisation; Gist acquisition completed, integration on track

Robust balance sheet and cashflow; maintained investment grade metrics; further bond repurchase announced

Plan to restore dividend in FY24

Stuart Machin, Chief Executive said:
"One year in, our strategy to reshape M&S for growth has driven sustained trading momentum, with both businesses continuing to grow sales and market share. Our Food and Clothing & Home businesses invested in value to protect customers from the full force of inflation which, whilst impacting margin, was the right thing to do, as serving our customers well is the only route to delivering for our shareholders.

Food outperformed the market, with customer perception for quality and value the highest in six years. The benefits of the Gist acquisition and operational efficiencies also supported an improved performance in the second half. Clothing & Home retained market-leading value perception, and its style credentials continue to improve. Sales were up in store and online, supported by growth in Click and Collect sales, active App users and Sparks loyalty membership; demonstrating the emerging power of our omni-channel model. The store rotation and renewal programme delivered strong sales uplifts and will accelerate this year, including the opening of five brand defining full-line stores in major cities. Our disciplined approach to capital allocation means we can invest for growth, while further reducing net debt and maintaining investment grade credit metrics, and we plan to resume dividend payments at our interim results.

M&S is such a special business with so much potential, and I want to thank all of my colleagues for their contribution to these results. Delivering performance and driving change is everyone's responsibility at M&S, and they have done a remarkable job. Despite facing significant headwinds, I am encouraged by the strong foundations established last year and excited about what we can achieve in the year ahead."

Non-GAAP measures and alternative proﬁt measures (APMs) are discussed within this release. A glossary and reconciliation to statutory measures is provided at the end. Adjusted results are consistent with how business performance is measured internally and presented to aid comparability. Refer to adjusting items table below for further details. ¹ References to 'sales' throughout this announcement are statutory revenue plus the gross value of consignment sales ex. VAT.
STRONG TRADING RESULTS
M&S delivered strong results in 2022/23 despite significant inflationary cost headwinds impacting margins, reflecting the benefits of its programme to reshape for growth. Profit before tax and adjusting items for the period was £482.0m (2021/22: £522.9m). Statutory profit before tax was £475.7m (2021/22 £391.7m). Prior year results included £59.8m of UK business rates relief and a net rates charge of £139.7m compared with a net rates charge of £186.6m in 2022/23.

Clothing & Home grew sales 11.5% with LFL sales up 11.2% driven by a more confident approach to buying and a focus on the modern mainstream customer, which is starting to drive better style perceptions. While store sales outperformed, online sales were also up, with growth in Click and Collect sales, active App users and Sparks loyalty membership. Volume and value market shares increased.

Food grew sales 8.7% with LFL sales up 5.4%, outperforming the market in volume and value terms with broadened appeal, through focused product development and investment in trusted value. While investment in value reduced margin, the positive customer response supported the delivery of improved trading performance in the second half. Margin in the second half also benefitted from the acquisition of Gist.

International sales were up 11.2% at constant currency, driven by demand for clothing from global partners. As a result, profits recovered despite the combined impacts of the exit from Russia and on-going EU border related costs.

Ocado Retail sales were down 1.2%. While active customers grew, revenues reflected reduced volumes as a result of lower shopping frequency post-pandemic. Profitability was impacted by the effects of higher fixed costs from under-utilised capacity, the impact of which we are working together to reduce, as we build customer numbers over time.

RESHAPING M&S TO DELIVER LONG TERM GROWTH
M&S has a heritage of quality, style, innovation and value for money, recently resulting in it being voted the UK's most trusted brand ( source: YouGov). After a number of years of substantial change and investment, a strengthening omni-channel position in Clothing & Home and the broader reach of Food including through the Ocado Retail joint venture, provide opportunities for profitable growth.

During the year, the new leadership team, Stuart Machin, CEO, supported by Katie Bickerstaffe as his Co-CEO, set out their priorities to deliver sustainable growth. To support implementation of the plan, Stuart appointed Jeremy Townsend to the team as CFO in January 2023, and he will remain with the business until May 2025.

This statement reports delivery against this plan, setting out how these priorities will deliver profitable sales growth, improve operating margins, provide investment choices and drive shareholder returns. The nine priorities are set out in more detail below.

1. Developing exceptional product worthy of a trusted brand, through investment in great tasting, value for money, quality Food, and developing stylish, great value, quality Clothing and Home ranges.

2. Driving omni-channel growth. Increasing the participation of Clothing & Home online sales, through leveraging the national store and distribution network, to offer a convenient and consistent service however and wherever customers choose to shop. And growing utilisation of Ocado Retail's capacity, by providing superior service, market-leading choice and M&S products.

3. Capitalising on the strength of the M&S brand to grow global sales through capital light partnerships and the development of a multi-platform online business.

4. Making £400m of structural cost savings over five years, reducing cost to serve, and growing our margins through technology improvements to increase retail and supply chain efficiency and simplified and streamlined digital, technology and support centre functions.

5. Creating a high-performance culture. A simpler, faster, delivery focused business which is passionate about M&S products, puts the customer first and has the digital skill set to make fast, informed decisions.

6. Accelerating store rotation and renewal to create a more productive estate of c.180 full-line stores and opening more than 100 new Food stores positioned in growth locations, which support omni-channel retailing.

7. Modernising the supply chain to improve availability and customer service, while reducing costs and working capital.

8. Creating a more engaging and connected customer experience to drive omni-channel growth. This brings together the Sparks loyalty programme and payment options, supported by an effective and more efficient technology infrastructure.

9. Disciplined capital allocation, to strengthen the balance sheet, reinstate an investment grade rating for our debt and restore dividends. Robust liquidity and balance sheet metrics allow for a further bond repurchase exercise of c.£225m in respect of our medium-term maturities, also announced today.

OUTLOOK AND GUIDANCE
M&S has had a good start to the new financial year, with both Food and Clothing & Home growing sales. While the economic outlook for consumer spending is uncertain, cost inflation remains high, and market conditions are expected to become more challenging, the strategy is beginning to deliver improved performance and there remains much within the Group's control.

In FY24, modest growth is expected in revenues, driven by omni-channel as well as from the benefits of the accelerating store rotation plan. Further investment in quality and trusted value will be partly offset by actions to mitigate sourcing cost pressures and to reduce waste and stock loss.

Cost inflation includes over £50m of energy costs as well as colleague pay increases of more than £100m, which are expected to be offset by the delivery of over £150m of in-year savings from the structural cost reduction programme. This gives scope to invest in customer service and digital development, while controlling costs.

Despite facing significant headwinds, we are encouraged by the strong foundations established last year.
DIVIDEND
The Group suspended dividend payments at the start of the pandemic to protect the balance sheet. This enabled it to invest in its transformation priorities and trusted value. With the business generating an improved operating performance and having a strengthened balance sheet with credit metrics consistent with investment grade, the Board plans to restore a modest annual dividend to shareholders, starting with an interim dividend at the results in November.
DELIVERING PROFITABLE SALES GROWTH
M&S' goal is to deliver profitable long-term sales growth through developing exceptional product and a trusted brand, offering a leading omni-channel retail experience including through Ocado Retail and expanding the global reach of the business.
FOOD OUTPERFORMS DUE TO INVESTMENT IN INNOVATION AND TRUSTED VALUE
The objective for Food is to achieve 1% growth in market share and an adjusted operating margin of c.4% over the next five years. This will be delivered through 'protecting the M&S magic' of trusted value and innovation in fresh, easy-to-cook food, while fixing the backbone processes of the supply chain and driving growth in the store estate.

Food grew sales 8.7% to £7.22bn with LFL sales up 5.4%, with particularly good growth in hospitality and franchise. Sales in core categories were up c.5.0% and well ahead of pre-Covid levels, reflecting the strategy to broaden appeal. Grocery market share increased 20bps to 3.6%, with M&S outperforming all major full-line supermarkets. (source: Kantar 52 w/e 19 March 2023).

Operating profit before adjusting items of £248.0m compared with £277.8m in the prior year (which included £24.6m of business rates relief), resulting in a net adjusted operating margin of 3.4%.

While investment in value reduced margin in the first half, as we did not pass through the full impact of cost inflation to customers, the resulting positive effect on customer volumes drove sales. Combined with an in-year contribution to operating profit from the Gist acquisition of £27m, this enabled an increase in second half adjusted operating margin to 4.5%, compared with 3.8% last year.

Growth underpinned by investment in trusted value: In recent years, Food has shifted to trusted value to broaden appeal, reducing the volume of promotions and become competitive at opening price points. At a time when customers' focus is on the cost of living, further investment was made early in the year, which meant that the business did not pass through the full impact of cost inflation on its margins. This included:

Sharpening the prices of over 100 'Remarksable value' lines which offer M&S quality at everyday prices, implementing 'locked prices' across a range of c.150 everyday family favourites and moving the iconic 'Dine-In' offer to 'Always On' - offering an affordable, restaurant-quality alternative to eating out; and

As a result, the mix of value lines increased. For instance, Remarksable sales were up 40%, and featured in over c.20% of customer baskets. Dine-In launches such as 'steak and chips' also drove substantial sales growth in the offer.

Performance fuelled by innovation and investment in basket building categories: The innovation pipeline helped to increase sales of fresh categories across the year and ambient products over Christmas, Valentine's and Mother's Day when event sales grew by an estimated 20%. Product launches included:

A programme of quality upgrades with M&S winning c.200 'tried and tested' awards from titles such as Good Housekeeping. For instance, the introduction of Oakham™ Gold chicken means that all the fresh chicken sold is now slower-reared, British and RSPCA Assured;

Strong seasonal launches such as the 'master grill' range for summer barbeques and Limited Editions for key events; and

Reset and relaunched ranges aimed at driving market share in larger baskets including soft drinks, household cleaning, frozen desserts, and cereals.

Quality and value perceptions highest in six years: M&S continues to generate market-leading quality and sustainability perceptions in Food, while the continued strategy of investment in trusted value has driven improved perceptions of value.
CLOTHING & HOME DELIVERING IMPROVED STYLE PERCEPTIONS AND SUSTAINING LEADING VALUE POSITION
The objective for Clothing & Home is to deliver a 1% increase in market share and an adjusted operating margin of c.10% over the next five years, by driving omni-channel growth of a stylish, quality, value for money M&S range, alongside a family of partner brands.

Clothing & Home grew sales 11.5% to £3.72bn with LFL sales up 11.2%. Full price sell-through at 88% was level with last year and well above historical levels. Clothing & Footwear market share increased 30bps to 9.3%. (source: Kantar 52 w/e 2 April 2023)

Store sales increased 14.9% to £2.5bn with strength in city centre and shopping centre locations. Online grew 4.8% to £1.2bn, with strong growth in Click and Collect sales, which were up c.20%, with more than one third of orders now generated through the M&S App.

Operating profit before adjusting items of £323.8m compared with £330.7m in the prior year (which included £35.2m of business rates relief), an increase of 9.6% excluding the impact of business rates. Adjusted operating margin of 8.7% is now c.170bps above 2019/20. Overall results reflected the leverage from sales growth offsetting cost pressures, particularly from sourcing and currency as we did not pass through the full impact of cost inflation to customers and from planned digital investments.

Style credentials improving with more confident buying: A more confident approach to buying, and focus on the modern mainstream customer, is starting to deliver increased value for money and style perceptions.

Clothing & Home has focused on buying more deeply into core lines, and offering clearer price points and better availability. For instance, women's denim sales have grown over several years, cementing M&S' leading market share in the category, which has increased to 13% from less than 10% two years ago.

Greater investment has been made into categories which drive style perception. For example, casual dress sales grew 40% in 2022/23. As the strength of demand became apparent, increased purchases of popular lines were made using short lead-time supply routes, meeting demand while managing markdown risk.

The improved range is supported by digital analytics to assess profitability per option more accurately. In addition, availability is being measured and stock is being allocated on a demand weighted basis.

Strong performance of event related categories: In a year when customers were making the most of the return of events, weddings and holidays, growth was generated in top end 'Autograph' sales while making further progress in casual wear.

Men's 'Autograph' sales increased c.60% while chino sales increased c.25%, reflecting the strategy to build a "smart separates" business for workwear. A focus in the current year is on the introduction of more regular newness.

Kidswear and Home offer important potential for improvement in market share. However, growth in the year was modest, in a more difficult market, against pandemic related comparatives. Having established a stronger value position, the aim is to build increased awareness and appeal of the range. For instance, partnerships such as Fired Earth are being expanded across more categories.

Sustained, market leading value perception: As a result of improvements to the range, and investment in trusted value, we have held leading value perception ratings in recent years, alongside Clothing & Home's lead for quality and sustainability. Encouragingly, style perception is also now improving.
LEVERAGING OUR OMNI-CHANNEL ADVANTAGE Omni-channel development, supporting growth in Clothing & Home online
Clothing & Home's objective is to increase online sales participation and achieve a better margin for online sales. We aim to drive online growth through increased frequency and spend and using the national store and distribution network to offer a convenient and consistent service.

Online sales grew 4.8%, driven by an improved omni-channel proposition, with strong growth in Click and Collect sales which were up 20%. Customer orders grew 12.6%, despite the effects of courier capacity constraints over peak trading. This was partly offset by the normalisation of returns rates post-pandemic. As expected, online adjusted operating profit margin reduced to 5.0% from 9.1%, this was due to sourcing cost pressures which reduced gross margin and planned investments in digital and omni-channel improvements to drive future growth.

Acquiring, converting, and retaining customers: Customers who move from shopping in one channel to multiple channels and products typically spend more. An effective and profitable way to serve these omni-channel customers is through the M&S App.

Use of the M&S App and associated Sparks memberships continued to grow with average active App users increasing by c.40% to 4.3m supported by sign up campaigns such as the '12 days of Sparks' in December when users could gain access to exclusive offers and rewards.

The aim is that the App should provide a personalised 'shop front' to the M&S brand and Sparks loyalty membership and connect the store and online worlds through services such as easy collection & returns and 'scan and shop'.

Upgrades to the online experience have included, 'one click' checkout with digital receipts, and improved functionality in the App. At the same time, development of automation has driven further growth in the volume of personalised interactions.

Creating a convenient and consistent service across channels: The national store and distribution network provides an important customer service advantage with over 60% of orders collected at store and more than three quarters of online returns processed through the store network.

Digital Click and Collect is being rolled out to the estate enabling rapid collection and we have implemented self-service returns, reducing the cost of processing and turnaround time for resale.

Using in-store fulfillment to expand capacity allowed 9% of items ordered online to be filled from store stock. We are also trialling the resale of Clothing & Home returns made to Simply Food stores through local hubs.

A key goal over the next three years is to leverage the omni-channel store and warehouse network, further reducing costs and creating additional capacity.

Early stage growth of third-party brands: M&S now trades with over 140 partners, strengthening the customer offer where brands are important such as dresses, sports, home and beauty. Third party brands help attract new shoppers, who also buy M&S products.

Total sales of Clothing, Beauty and Home brands increased 67% to £158m. Online brands sales now represent c.8% of total online sales

Launches during the year included Clinique and Benefit in beauty and an extended sports offer through The Sports Edit at M&S.com.

Having grown rapidly from a standing start, investment is being made to simplify on-boarding for partners, to introduce 'drop ship' capability to enable fulfilment from partner stock and to reduce the volume of split shipments, thereby lowering costs.

Ocado Retail Reset Underway
The Ocado Retail joint venture combines the strength of M&S' brand, food quality and innovation with unique and proprietary technology to create a compelling offer. It has already generated significant volume growth and buying benefits for M&S Food with over £600m of M&S product sales through Ocado.com last year. During the year, new leadership was appointed, with Hannah Gibson taking the role of CEO.

Ocado Retail generated total revenue of £2.22bn, down 1.2%. While active customers grew, revenues reflected reduced volumes due to lower shopping frequency as a result of pandemic reversion and the impact of cost inflation on customers. The M&S share of Ocado Retail net loss was £29.5m compared with a net profit of £13.9m in 2021/22. The reduction was driven by the effects of higher fixed costs from new and underutilised capacity, increased marketing to drive new customer growth and energy related cost pressures.

Resetting the customer proposition: The team's focus is on improving customer experience including re-engaging lapsed and occasional customers with improved service including 'kitchen table' deliveries and investing in value to broaden appeal, through the Ocado Price Promise.

Improving operating costs: Alongside this, steps to reduce costs are underway. These include network optimisation, with the proposal to cease operations at the Hatfield site, shifting volume to more efficient CFCs including Luton; the first site with on-grid robotic pick, as well as marketing efficiencies and overhead reductions.

Deepening collaboration between Ocado Retail and M&S: The M&S core range available on Ocado.com has been increased by more than 300 lines to c.5,700, and we are starting to leverage the potential of the M&S customer base more broadly. Efficiencies are also being scoped from joint sourcing and logistics.

Substantial growth and profit potential: Ocado Retail has grown revenue by 40% since 2019 and has a large, addressable market and substantial invested capacity to grow sales and to recover profitability in the medium term.
EXPANDING GLOBAL REACH THROUGH STRONG PARTNERSHIPS
M&S' objective is to grow International retail sales through leveraging its brand through capital light partnerships and a multi-platform online business with global reach.

International sales increased 11.2% at constant currency to £1.06bn, with partner retail sales growth of 8% driven by Clothing & Home. Sales were adversely impacted by c.5% by the exit from markets including Russia during the year.

Online sales were up 5% and are more than double pre-Covid levels now accounting for 22% of International Clothing & Home sales. Operating profit before adjusting items of £84.8m compared with £73.6m in 2021/22, which included a contribution in the prior year of £5.5m from Russia. Excluding the Republic of Ireland, operating profit was £67.9m compared with £58.2m in the prior year.

Demand recovery across partner markets: In franchise and partner markets, demand was robust as partners re-stocked as footfall increased following emergence from Covid, with particular strength in India and the Middle East.

Investing in European operations: European online sales have grown rapidly in the past three years, and investment is being made to improve customer service and reduce cost to serve, including opening a new logistics hub in Croatia enabling the direct import of stock destined for EU markets.

Working to improve Food profitability in the Republic of Ireland: In the Republic of Ireland, while performance in Clothing & Home was robust, the Food business continues to be impacted by Brexit related costs. Steps include cost restructuring, increasing the proportion of locally sourced supply and assessing new routes to market, with a franchise store trial underway with roadside retailer Applegreen.
IMPROVING OPERATING MARGINS IMPLEMENTING A PROGRAMME TO STRUCTURALLY REDUCE COSTS
In 2022/23, adjusted operating margins were 8.7% in Clothing & Home and 3.4% in Food, against a medium-term objective of improving these to c.10% and c.4% respectively. The purpose of the cost reduction programme is structurally to reduce costs by more than £400m over the next five years. Accelerated store rotation and driving profitable online growth will be an important driver to improving margins. At the same time, we aim to offset annual inflation with productivity improvements.

To deliver this, investment is being made in technology to increase retail efficiency and reduce energy costs, embarking on a multi-year programme in the supply chain and simplifying and streamlining digital, technology and support centre functions. Examples of programmes include:

The roll out of a further c.800 self-checkout tills (including within Clothing & Home) and further developments to scan and pay. As a result, in these stores over 70% of Food transactions are now self-serve. Alongside the effects of sales leverage, this has enabled the business to reach its target of 10% retail staff costs as a percentage of sales, ahead of plan;

Warehouse rationalisation and investment in automation at the Bradford warehouse in Clothing & Home, alongside changes to returns processing; and

Simplified structures within the support centre, which in 2022/23 included bringing together the digital and technology teams in data science, digital product development and enterprise systems.

In the year ahead, inflation from colleague pay of more than £100m and c.£50m in additional energy costs are expected. Investments are planned in store service, accelerating store rotation and new technology such as the Clothing & Home order planning system and the roll out of a new Food forecasting and ordering system. These headwinds will be partly offset by cost savings of over £150m, resulting overall in a slight increase in costs.
CREATING A CULTURE OF DELIVERY
A key element of the plan to reshape M&S is the creation of a high-performance culture. The aim is to raise the 'bench strength' of M&S talent and create a simpler, faster, digitally enabled organisation. This requires a culture that is closer to colleagues, closer to customers, and a place where everyone can be themselves and be their best. Key elements of the programme include:

Building a simpler, faster, digitally enabled organisation; For instance, digital leadership has been reset, including the introduction of a new online and omni-channel director role. The technology, digital product and data teams have been brought together as one function and M&S Connect created, putting M&S Bank & Services and Sparks under one leadership;

Creating a culture that is closer to colleagues and closer to customers; During the year this included a substantial investment in colleague pay and reward and the requirement for support centre colleagues to spend seven days per year working in store, bringing them close to the front-line;

Raising the bar on talent; with fast-track learning and future leaders' programmes introduced developing skills sets at all levels. At the same time, robust goals linked to delivery of the nine priorities have been implemented; and

Building the skills for tomorrow; The data science and AI apprenticeship group has expanded to over 200 colleagues and the M&S BEAM Academy, which develops technical skills sets, continues to grow. Alongside this the Product Academy has equipped over 25,000 colleagues with selling and service skills for modern omni-channel retailing.

This is supported by a set of core expectations and behaviours of how the business operates from day to day.
MAKING DISCIPLINED INVESTMENT CHOICES
M&S' capital investment programme is focused on increasing volume in growth channels and on structural reductions of the cost base. Appraisal of investments applies hurdle rates commensurate with risk, with a primary focus on cash payback on store investments.

Total investment during the year was over £500m, up from £300m in 2021/22. This included the £103m net initial payment for the acquisition of Gist and just over £400m of capital expenditure. The increase in capex largely related to store renewals, the resumption of property asset replacement following the pandemic and improvements to the technology infrastructure. In the coming year, we expect to maintain a similar level of capital expenditure.

Capital expenditure is focused on three programmes.

1. Accelerating store rotation and renewal to create a high productivity brand defining estate of c.180 full-line and c.400 Food stores positioned in growth locations. Over five years this is expected to reduce Clothing & Home selling space by c.20% and increase Food space by c.10-15%.

In 2022/23, the full-line estate reduced by three stores, while the owned Simply Food estate increased by five. In some cases, we are on track to double sales and pay back the capital invested in c.3-4 years, including closure costs for relocations. A good example of this is the Chesterfield High Street store, which was closed and the business relocated to the nearby retail park.

This year the plan is to open 8 full-line and 10 Food stores while closing c.20, of which 10 will be closed for relocation. The relocations include opening five new 'flagship' properties in Liverpool, Leeds, Manchester, Birmingham and Thurrock.

Over 80 stores are now in a renewal format including a new full-line store at Stevenage. In full Food renewals these add capacity in areas catering to the larger family shop. Paybacks currently average c. four years and in the next phase the plan is to refine space allocation, range and service to further increase returns.

2. Modernising the Clothing & Home and Food supply chains to create a lower cost network which prioritises the timely flow of products over storage and stock holding.
Clothing & Home is planning a five-year programme of investment which includes:

Consolidation, to focus on fewer, more strategic clothing and fabric suppliers;

Systems upgrades to create greater visibility, improve replenishment and reduce excess stock commitment and storage; and

Creating a logistics network to support the omni-channel offering, largely using existing assets, and investing in automation and new capacity to improve availability and speed up delivery and returns.

In Food last year the acquisition of Gist was completed, taking control of the logistics network:

The H2 contribution from the acquisition was c.£27m, from the elimination of management fees, operational savings and improved service over peak;

There is the potential to drive productivity improvements from shared transport across Clothing & Home and Food and a plan for network modernisation is being developed; and

A new forecasting, ordering and allocation system is being implemented, with the planned benefit of helping to reduce waste.

3. Creating a more engaging digital customer experience which brings together loyalty and payment, supported by an effective technology infrastructure.
In 2022/23, the teams working on omni-channel & Sparks were combined with those responsible for commercial and enterprise planning systems to optimise use of technology resources across the Group.

Investment in year included technology improvements in stores and the initial implementation of the food forecasting and ordering system, personalisation developments and the trial of Sparks Pay;

Steps are being taken to upgrade core systems, including enterprise resource and new payroll applications and the supply chain improvements outlined above; and

The opportunity to create a more effective payment and loyalty proposition through a unified single sign on across all M&S products is also being evaluated.

The Group's ability to invest is driven by its capital allocation framework, which focuses on the generation of free cashflow from operations. In 2022/23, this was £170m and after the initial consideration for the acquisition of Gist, net debt excluding lease liabilities reduced by a further c.£64m to £356m, with the group continuing to have substantial cash balances of £1,068m. After recent improvements to the balance sheet, ratios of debt to EBITDA and cashflow to net debt are now at levels consistent with an investment grade credit rating which balances the needs of shareholders and creditors while providing a robust 'sponsor covenant' to pension trustees. In 2023/24, we will continue to focus on free cashflow, prioritised investment and look to achieve an investment grade credit rating during the year.
DRIVING SHAREHOLDER RETURNS, RESTORING THE DIVIDEND
With the business generating an improved operating performance and having a strengthened balance sheet with credit metrics consistent with investment grade, the Board plans to restore a modest annual dividend to shareholders starting with an interim dividend with the results in November.

F or further information, please contact:
Investor Relations:
Fraser Ramzan
+44 7554 227758
Sandeep Dasgupta
+44 7868 735 381

Media enquiries:
Corporate Press Office
+44 (0)20 8718 1919

Investor & Analyst presentation and Q&A:
A pre-recorded investor and analyst presentation will be available on the Marks and Spencer Group plc website here from 7:30am on 24 May 2023.

Stuart Machin, Katie Bickerstaffe and Jeremy Townsend will host a Q&A session at 9.30am on 24 May 2023:

For the quickest joining experience, please register prior to attending the call here. After registering, you will be given unique dial in details to join the call.

Alternatively, you can use the below details to join the call but please join 5-10 minutes before the start time in order to register your details with the operator.

Dial in: +44 (0) 33 0551 0200
Passcode: Quote Analyst Q&A call when prompted by the operator
Replay: A recording will be available for 48 hours after the call here

Fixed Income Investor Conference Call:
This will be hosted by Jeremy Townsend, Chief Financial Officer, at 2pm on 24 May 2023:
For the quickest joining experience, please register prior to attending the call here. After registering, you will be given unique dial in details to join the call.

Alternatively, you can use the below details to join the call but please join 5-10 minutes before the start time in order to register your details with the operator.
Dial in: +44 (0) 33 0551 0200
Passcode: Quote Fixed Income Investor call when prompted by the operator
Replay: A recording will be available for 48 hours after the call here
Important Notice: The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences and prospects are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect Marks & Spencer's current expectations concerning future events and actual results may differ materially from current expectations or historical results. Any forward-looking statements are subject to various risks and uncertainties, including, but not limited to, failure by Marks & Spencer to predict accurately customer preferences; decline in the demand for products offered by Marks & Spencer; competitive influences; changes in levels of store traffic or consumer spending habits; effectiveness of Marks & Spencer's brand awareness and marketing programmes; general economic conditions including, but not limited to, those related to the Covid-19 pandemic or a downturn in the retail or financial services industries; acts of war or terrorism worldwide; work stoppages, slowdowns or strikes; and changes in financial and equity markets. For further information regarding risks to Marks & Spencer's business, please consult the risk management section of the 2023 Annual Report (pages 56-65).
The forward-looking statements contained in this document speak only as of the date of this announcement, and Marks & Spencer does not undertake to update any forward-looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
FULL YEAR FINANCIAL REVIEW Financial Summary Notes:
There are a number of non-GAAP measures and alternative profit measures ("APMs") discussed within this announcement, and a glossary and reconciliation to statutory measures is provided at the end of this report. Adjusted results are consistent with how business performance is measured internally and presented to aid comparability of performance. Refer to the adjusting items table below for further details.
Group results
Group sales were £11,988.0m. This was an increase of 9.9% versus 2021/22, driven by Clothing & Home sales up 11.5%, Food sales up 8.7% and International sales up 12.6%. UK Food sales growth also reflects the impact of third party sales by Gist Limited of £84.2m following its acquisition, which had a positive effect of c.1.3% in the year. Like for like sales were unaffected by the acquisition of Gist.

Statutory revenue in the period was £11,931.3m, an increase of 9.6% versus 2021/22.

The Group generated profit before tax and adjusting items of £482.0m, compared with £522.9m in the prior year.

The Group benefited from Covid-related UK business rates relief of £59.8m in 2021/22, which was not repeated in 2022/23.

Adjusting items were a net charge of £6.3m, compared with a charge of £131.2m in the prior year. The reduction was largely a result of a credit of £108.0m representing the revaluation of the contingent consideration payable for the investment in Ocado Retail Limited.

As a result the Group generated a statutory profit before tax of £475.7m, compared with £391.7m in the prior year.

Adjusted basic EPS was 18.1 pence, down 16.6% on 2021/22 reflecting business rates relief in the prior year. Basic EPS was 18.5 pence, up 17.8% on 2021/22, reflecting the reduced net charge for adjusting items.

For full details on adjusting items and the Group's related policy, read more on notes 1 and 3 to the financial information.
UK: Food
UK Food sales increased 8.7%, with like-for-like sales up 5.4%, underpinned by strong performance of hospitality and franchise sales, following Covid restrictions in the prior year.

¹ UK Food sales growth in Q3 and Q4 reflect the impact of third party sales by Gist Limited, which had a positive effect in the FY of c.1.3%. UK Food sales are equal to statutory revenue.

M&S Food has an online grocery presence with Ocado Retail and these sales are reported through Ocado Retail and are not contained within these numbers.

Transactions increased, driven by the growth in hospitality and franchise sales which are typically smaller value and which were reflected in a reduction in overall basket value. However, larger basket transactions continued to grow.

Operating profit before adjusting items was £248.0m compared with £277.8m in 2021/22, with last year's result benefiting from £24.6m of UK business rates relief.

The overall Food adjusted operating margin decreased by 80bps (40bps excluding rates relief). Within this, gross margin declined 110bps, largely as a result of investment in trusted value, while operating costs improved 70bps as sales grew faster than costs.

Total adjusted operating costs grew c.7%, with growth of c.4% excluding business rates relief and the acquisition of the Gist third-party business. This included pay and inflation related cost increases such as energy of c.7%, new space and volume of c.1.5%, and investments such as in-store technology improvements. However, this was partly offset by efficiencies of c.6%, predominantly in store staffing and benefits from the Gist management fee saving, following acquisition.

The table below sets out the resulting movement in Food adjusted operating margin by key cost driver:

Store staffing costs decreased 50bps. Colleague pay increases were largely offset by retail efficiencies and sales growth.

Other store costs increased 10bps, with a 40bps adverse impact from the receipt of business rates relief in the prior year, and additional energy cost headwinds.

Distribution and warehousing costs increased 10 bps. The increase largely reflects pay and inflation increasing faster than sales, although these were partly offset by Gist management fee savings in H2.

Central costs decreased 10bps due to sales leverage, despite additional technology investments in store and trials of the new forecasting, ordering and allocation system.

UK: Clothing & Home
Clothing & Home sales increased 11.5% with continued recovery of store sales, which are now above pre-Covid levels, and a robust performance by the online business.

To enable greater insight into these movements, further detail is provided on the performance of each channel.
Online
¹ Traffic: the number of site visits to M&S.com and the app.
² Conversion: the number of orders as a % of the number of site visits.
³ Prior year number restated due to basis of calculation. Returns rate represents returns on despatch sales.

Following strong performance last year, online sales remained solid with growth throughout the year despite a tough market backdrop. Average order value grew almost 6% reflecting higher average selling prices, partly driven by mix.

The online returns rate increased year-on-year due to the growth of third-party brands which have a higher returns rate and a reversion in product mix and customer behaviour. Store returns rates reduced, with fitting rooms now reopened post pandemic.
Stores
UK Clothing & Home store sales increased 14.9%, with all clothing store formats seeing an improvement in sales year-on-year, also supported by higher average selling prices and mix. Average weekly footfall was up 12.5% following Covid restrictions lifting during Q1 last year, contributing to an increase in transactions.
Total Clothing & Home
Operating profit before adjusting items was £323.8m compared with £330.7m in 2021/22, with last year's result benefitting from £35.2m of UK business rates relief.

The overall Clothing & Home adjusted operating margin decreased by c.120bps (20bps excluding rates relief). Within this, gross margin decreased 290bps, although this was partly offset by lower operating costs as a percent of sales, as sales grew faster than costs.

Within gross margin, bought-in margin declined c.200bps. Sourcing, freight and in-year currency related cost pressures, particularly in H2, were not fully offset by pricing activity. In addition, as expected, promotional mix normalised and, third-party brands grew, diluting margin by c.30bps.

Total adjusted operating costs increased 7.6%, with growth of 5.2% adjusted for business rates relief. Pay and inflation related costs such as energy contributed 4% to cost growth, while space, volume and channel mix contributed 3% and investments were made in digital development, the growth of third-party brands and marketing. These were partly offset by efficiencies of c.3%, including store staffing.

The table below sets out the drivers of the movement in Clothing & Home operating profit before adjusting items for the total segment and by channel.

Store staffing costs decreased 60bps. Colleague pay increases were more than offset by retail efficiencies and sales growth.

Other store costs were level. There was a 100bps adverse impact from the receipt of business rates relief in the prior year, which was offset by the effects of sales growth.

Distribution and warehousing costs improved 110bps due to sales growth and channel mix, which more than offset pay inflation.

Central costs were level as a percentage of sales despite significant additional digital investments including website front end development and increased personalisation.

As outlined above, store margin increased, largely due to strong sales growth. Online margin was adversely impacted due to slower sales growth, product mix and digital investments.
International
Total International sales increased 11.2% at constant currency. Store sales grew 14% as the business recovered from lockdown in several markets in Q1 of the prior year. Online sales were up 5% led by India and growth through European marketplaces in H2.

Sales excluding the Republic of Ireland were up 15.1% at constant currency, driven by Clothing & Home sales in India and continued robust demand from partners in the Middle East. Trading in Europe was adversely impacted by the closure of operations in Russia and France. Sales growth in the Republic of Ireland was robust despite continuing EU border related headwinds in Food.

Total International operating profit before adjusting items was up 15.2% to £84.8m, with adjusted operating margin up 10bps to 8.0%. This was largely driven by growth in markets excluding the Republic of Ireland.

Gross margin decreased by 20bps, driven by a reduced Clothing & Home gross margin in the Republic of Ireland. Operating costs increased 11.6% but reduced as a percent of sales. The increase in operating costs was largely driven by the business returning to a fully operational state following Covid related lockdowns in Q1 last year. In addition, pay and energy related cost inflation was absorbed in owned markets.
Ocado Retail Ltd
The Group holds a 50% interest in Ocado Retail Ltd ("Ocado Retail"). The remaining 50% interest is held by Ocado Group plc ("Ocado Group"). Full Year Results are consistent with the quarterly results reported by Ocado Group on behalf of Ocado Retail for the quarterly periods ended 29 May 2022, 28 August 2022, 27 November 2022 and 26 February 2023.

Notes: Retail revenue comprises revenues from Ocado.com and Ocado Zoom. Average orders per week refers to results of Ocado.com

Revenue declined 1.2% over the 52 weeks to 26 February 2023. While active customers grew 14.6% and order numbers increased 3.9%, basket sizes have continued to decline due to the near-term pressures of the pandemic unwind and cost-of-living crisis. Revenue performance in the last three quarters was ahead of last year.

¹ Exceptional items are defined within the Ocado Group plc Annual Report and Accounts 2022.

Ocado Retail EBITDA before exceptional items was down, reflecting smaller baskets, lower gross margins, under-utilised CFC capacity and higher fulfilment and delivery costs.

Ocado Retail recognised £21.2m of exceptional income before tax, predominantly relating to the insurance income for Andover and Erith CFCs, offset by costs relating to the development and introduction of new IT systems as Ocado Retail transition away from Ocado Group IT services, tools and support.

As a result of lower EBITDA, partly offset by exceptional profits, M&S Group share of Ocado Retail loss after tax was £29.5m.
M&S Bank and Services
M&S Bank and Services generated a loss before adjusting items of £0.5m, as compared with profit of £13.0m in 2021/22. Deterioration of the forward macro-economic environment guidance drove the need for higher bad debt provision resulting in insufficient profits to generate a profit share payment.
Net finance cost
Net finance costs before adjusting items decreased £41.5m to £144.6m. This was driven by higher average interest rates on cash balances and higher pension finance income from a larger opening pension surplus balance. In addition, interest expense reduced as a result of the partial buy-back of 2023 and 2025 bonds.

Adjusting items within net finance costs reflect a credit relating to the remeasurement of Ocado Retail contingent consideration of £108m and a charge of £2.8m reflecting the discount unwind on deferred consideration and revaluation of contingent consideration on the acquisition of Gist Limited.
Group profit before tax and adjusting items
Group profit before tax and adjusting items was £482.0m, down 7.8% on 2021/22. The profit decrease was largely due to declines in Food, Clothing and Home and Ocado Retail, offset by an increase in International operating profit and reduced interest. UK profits in the prior year benefitted from £59.8m business rates relief.
Group profit before tax
Group profit before tax was £475.7m, up 21.4% on 2021/22.
Adjusting items
The Group makes certain adjustments to statutory profit measures in order to derive alternative performance measures (APMs) that provide stakeholders with additional helpful information and to aid comparability of the performance of the business. For further detail on these (charges)/gains and the Group's policy for adjusting items, please see notes 1 and 3 to the financial information. These (charges)/gains are reported as adjusting items on the basis that they are significant in quantum in current or future years and to aid comparability from one period to the next.

Adjusting items recognised were a net charge of £6.3m. These include:

A charge of £51.3m in relation to UK store estate rotation plans. This reflects a revised view of latest store exit routes, assumptions, estimated closure costs, charges relating to the impairment of buildings, fixtures and fittings, and accelerated depreciation.

A non-cash charge of £10.7m within organisation relating to updated assumptions regarding the sub-let of previously closed Merchant Square offices.

A charge of £16.4m for structural simplification of the organisation, which has resulted in a reduction of c.700 roles across support centres, management and stores, with the charge reflecting the associated redundancy and exit costs.

A net charge of £10.5m for UK logistics, reflecting estimated costs of closure relating to the announced closure of a further distribution centre in 2023/24, as part of the previously announced programme to transition to a single-tier UK distribution network.

A non-cash net credit of £15.1m in relation to UK and International store impairments, driven by revised future cash flow projections in relation to the carrying value of stores.

A charge of £22.1m relating to the acquisition of Gist to transform the supply chain. Within this, £18.2m of charges relate to the settlement of our pre-existing relationship with Gist Limited.

A non-cash charge of £14.0m with respect to the amortisation of intangible assets acquired on the purchase of our share in Ocado Retail partly offset by the related deferred tax credit.

Charges of £2.0m have been incurred relating to M&S Bank, primarily due to the insurance mis-selling provision.

In 2021/22, the Group announced the restructure of its franchise operations in France. Following finalisation of costs, £0.4m of the provision has been released, with no future costs currently expected.

A credit of £108m representing the revaluation of the contingent consideration payable for the investment in Ocado Retail Limited to £64.7m.
Taxation
The effective tax rate on profit before tax and adjusting items was 25.9% (2021/22: 18.2%). This was higher than the UK statutory tax rate primarily due to the impact of the recapture of tax relief on distributions to the Scottish Limited Partnership (SLP), which have resumed in the year, and non-taxable Ocado Retail losses.

The effective tax rate on statutory profit before tax was 23.4% (2021/22: 21.1%). This is lower than the effective tax rate on profit before adjusting items due to the impact of non-taxable adjusting items.

In 2023/24 we expect the effective tax rate on profit before tax and adjusting items to increase to c.31-32%, largely as a result of the increase in the UK corporation tax rate.
Earnings per share
Basic earnings per share was 18.5p (2021/22: 15.7p), due to the increase in profit year-on-year. The weighted average number of shares in issue during the period was 1,963.5m (2021/22: 1,958.1m).

Adjusted basic earnings per share was 18.1p (2021/22: 21.7p) due to lower adjusted profit year-on-year.
Cash flow
The business generated free cashflow from operations of £170.4m, reducing year on year. This was driven by lower operating profit as a result of business rates relief in 2021/22, prior year working capital inflows, increased capital expenditure (detailed below), and tax payments.

Prior year working capital inflows were partly a result of changes to payment terms for Clothing & Home suppliers during the pandemic, which are partially reversing as Clothing & Home shifts back towards pre-Covid terms. The outflow was lower than anticipated due to the phasing of payables over year end.

Defined benefit scheme pension funding of £36.8m reflects the agreed SLP interest distribution to the pension scheme.

Increased taxation was principally due to the resumption of UK corporation tax payments in the period.

Adjusting items in cashflow includes £26.4m relating to the exit of the Russian franchise business, £22.8m relating to the UK store estate strategy, £8.9m related to structural simplification, £6.7m for costs related to the Gist acquisition and £2.0m relating to the M&S Bank insurance mis-selling provisions.

Loans to associates reflects drawdown of the shareholder loan facility by Ocado Retail, with an outflow of up to £70m anticipated in 2023/24.

Acquisitions, investments and divestments were driven principally by the payment of £102.8m relating to the acquisition of Gist, net of cash received.

The business generated free cashflow of £63.6m, resulting in a further reduction of net debt.
Capital expenditure
Group capital expenditure before property acquisitions and disposals increased £102.6m to £402.8m due to increased investment in technology, store remodelling and property asset replacement.

UK store remodelling costs reflects 31 Food renewals and upgrades to Clothing & Home space in several full line stores.

Spend on new UK stores primarily related to the opening of 3 full line and 6 Food stores and one Food extension.

Supply chain expenditure reflects investment in the underlying base food infrastructure together with spend on upgrading vehicles.

IT and M&S.com spend includes technology replacement and upgrades in stores, continued investment in website development and investment in food planning systems.

Property asset replacement has increased in the current year, primarily driven by the resumption of investment following the pandemic. This includes roof works and replacement of fridges, freezers, boilers, lifts and escalators.

Prior year disposals include receipts from the sale of two warehouses.

The movement in capital accruals and other items is driven by landlord contributions partially offset by an increase in capital accruals as capex spend normalises post pandemic.
Net debt
Group net debt decreased £61.6m driven by free cashflow from operations of £170.4m, and a net cash outflow of £102.8m relating to the acquisition of Gist.

New lease commitments, remeasurements (including from acquisitions) in the period were £270.7m, largely relating to 14 new UK leases, the consolidation of Gist Limited lease liabilities, lease additions in India, and UK property and logistics liability remeasurements. This was largely offset by £231.8m of capital lease repayments.

The composition of Group net debt is as follows:

The Medium Term Notes include five bonds, with maturities out to 2037, and the associated accrued interest. During the period part of the 2023 and 2025 bonds were repurchased, reducing near-term liquidity draws. The USD 300m 2037 bond is valued by reference to the embedded exchange rate in the associated cross currency swaps. During the year these swaps were reset and the embedded mark to market value realised resulting in an increased value of the debt. The full breakdown of maturities is as follows

Full-line store lease liabilities include £192.2m relating to stores identified as part of the UK store estate strategic programme. Of the remaining full-line stores lease liability, the liability-weighted average lease length to break is c.21 years. However, these average lease lengths are skewed by five particularly long leases on stores which are trading well in locations where the Group intends to remain. Excluding these five leases, the average term to break of leases outside the programme is c.16 years.

Simply Food store lease liabilities include £26.3m relating to stores identified as part of the UK store estate strategic programme. Of the remaining lease liability, the average lease length to break is c.10 years.

Within offices, warehouses and other lease liabilities, £143.0m relates to the sublet lease on the Merchant Square offices in central London, which is part of the strategic programme, organisation. Average lease length of all other offices and warehouses to break is c.8 years.

International leases relate primarily to India (c.£99m) and Ireland (c.£62m). Average lease length to break in India is close to nil, as the majority of these leases are past the break point, and so we have the flexibility to exit these at any time on several months' notice. Average length to lease break or expiry in Ireland is c.8 years.
Pension
At 1 April 2023, the IAS 19 net retirement benefit surplus was £477.4m (2021/22: £1,038.2m). There has been a decrease of £560.8m from the start of the year largely driven by an increase in gilt yields.

The pension scheme is fully hedged for movements in gilt yields. However, on an IAS 19 basis there is an inherent basis risk to the scheme valuation, with the pension assets moving with underlying movements in rates and scheme liabilities exposed to the movement in corporate bonds yields. In a normal period, this always results in some dislocation between movements in the scheme assets and liabilities. However, the increase in gilt yields in the year led to a larger dislocation. Nevertheless, there has been no material worsening of the scheme's overall funding position and the scheme remains fully funded on a technical provisions basis.

The most recent actuarial valuation of the Marks & Spencer UK Pension Scheme was carried out as at 31 March 2021 and showed a funding surplus of £687m. This is an improvement on the previous position at 31 March 2018 (funding surplus of £652m), primarily due to lower assumed life expectancy.
Download Full RNS PDF

# data[].attributes.attachment_link.title
Marks and Spencer Group Plc Full Year Results for 52 Weeks Ended 1 April 2023

# data[].attributes.attachment_link.description
M&S is a leading British retailer bringing quality, great value food, clothing and homeware to millions of customers around the world