'Emerging from a chrysalis': UK's M&S promises surprise from reshaped business

By James Davey

LONDON, July 6 (Reuters) - British clothing and food
retailer Marks & Spencer is emerging from the COVID-19
crisis as a very different business that will surprise people
with its financial performance, Chairman Archie Norman said on
Tuesday.

Norman and Chief Executive Steve Rowe believe the pandemic
has masked progress the 137-year-old group has made in its
latest attempt at a turnaround after decades of failures.

They have focused on transforming the culture in M&S,
improving the quality and value of its clothing and food
products, while reshaping its store estate and investing in
technology and e-commerce, including a venture with online
supermarket Ocado.

"We sort of feel we're emerging from the pandemic and
lockdown, like emerging from a chrysalis, a new and reshaped
business," Norman told shareholders attending M&S's annual
general meeting, held virtually for a second successive year.

"We think we're going to surprise a few people, not just
hopefully with our financial performance but also with the
things we do to demonstrate that M&S has really changed," he
said.

Norman, chairman since 2017, said the management had moved
on from fixing the basics in the business.

"We're now into a new phase and we'd like to think that new
phase is about growth," he said, adding this meant expanding
sales and market share.

"We're here to create a growing business, absolutely not in
the business of managing decline, we're investing for the
future," he said, adding the retailer was "very confident" about
the year ahead.

In May, M&S reported an 88% slump in 2020-21 profit but
forecast a rebound in 2021-22.

Shares in M&S closed down 2% at 154.4 pence, paring 2021
gains to 13% and valuing the business at 3 billion pounds ($4.1
billion).

($1 = 0.7259 pounds)
(Reporting by James Davey; Editing by Edmund Blair)