Whatever the reasons were it is still known that two major contenders declined

Whatever the reasons were it is still known that two

This preview shows page 2 - 5 out of 12 pages.

struggling, global food and fashion retailers. Whatever the reasons were, it is stillknown that two major contenders declined the top job of M&S at that time namelyAndy Bond (ASDA CEO) and Justin King (Sainsbury CEO) (Sky News,2014).Bolland could at best guess why his major competitors for the top job did not wishto compete because at present M&S was definitely giving him a headache.“The business is in good shape and we have strong foundations on which to buildthrough evolution not revolution” (International Business Times,2014), saidBolland soon after joining M&S. Of course Bolland was trying to be optimistic62U. Ahmed
when he said that because most indicators showed a struggling picture for M&S(see Fig.1).The British retailer since 2010 had still not shown signs of sustainable recoveryand had been rapidly losing market share in the UK to its competitors, especiallyfrom Next, Debenhams and Primark. For M&S the period between 2010 and 2014,in the UK, has been that of a steady decline. A paltry increase 0.2 % in market sharefrom 2010 to 2014 seems not doing justice to the 500 million pound investment instore uplift (Chapman,2012) (see Fig.2). In the last 3 quarters of 2012, M&S wassaid to lose around 92 basis points in market share (Neilan,2013). In fact Bolland,appointed in May 2010, has presided over 3 straight years of declining quarterlylike-for-like sales in M&S’s general merchandise arm—which includes fashionclothing (Loom,2014).2M&S: A Look BackThe story of M&S has been a very interesting one. Peter Drucker, one of the leadingbusiness gurus in the world, once said, “M&S is a management giant in the westernworld” (Mellahi, Jackson, & Sparks,2002). Another contemporary business writerPeter Doyle said that if he had to pick one company that “exemplified consistentlong-term growth, profitability and customer satisfaction, it would be Marks andSpencer. . .” (Mellahi et al.,2002).Rose AppointedTwiggey Campaign helped picking up proitsPoor Christmas Results0100200300400500600700800200320042005200620072008Stock PointsFig. 1Dwindling M&Sprofits.Source: Adapted fromThompson Stream.http://thomsonreuters.com/en/products-services/financial/investment-management/datastream-professional.html[accessed 10 July, 2014]0.00%2.00%4.00%6.00%8.00%10.00%12.00%14.00%ValueVolumeFig. 2Stagnant M&Smarket share (UK clothingmarket share).Source:Company Data, KantarFashiontrek, Morgan StanleyResearchMarks & Spencer: A Global Expansion to Acquire Lost Momentum?63
It is no wonder that such positive remarks about M&S, from prestigious businessacademicians, came during 1990s, a period when M&S was at its peak (see Table1).In fact it would be fair to say that before the beginning of twenty-first century M&Shad only known one taste and that was success. M&S was started by Michael Marksas a stall in the Leeds market in 1884.Initially M&S had outlets in form of the ‘penny bazaars’. After the death ofMicheal Marks, in 1907, his son (Simon Marks) and son’s friend (Israel Sieff), anEnglish businessman, transformed M&S from ‘penny bazaars’ to an iconic andcontemporary British retailer (see Appendix, Exhibit1) (Comay,2002). 1984 sawLord Rayner becoming the Chairman of M&S. He was the first non-family Chair-

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture