MKS10 Jan 2013 22:55
January interim management statement: The M&S share price fell 4% in early trading as the group's recovery strategy continued to test investors' faith. General Merchandise sales disappointed, with a move to protect profits via reduced promotional activity impacting sales. Chief Executive, Marc Bolland has reshuffled the Group's management, by appointing John Dixon, head of food, to take control of clothing and homewares, assisted by style director Belinda Earl. The group also recently promoted Frances Russell to lead womenswear, and appointed Janie Schaffer from Victoria’s Secret as head of lingerie and beauty. These appointments have yet to take effect, whilst a core drive to expand international sales has been constrained by currency movements and macro-economic weakness in Ireland, Greece and central Europe.
On the upside, the result of new management buying actions should become clear during 2013, store refurbishments are due to complete mid-year, whilst the group's recent staff pension review proved to be highly favourable – raising speculation regarding a possible takeover.
In all, Marc Bolland has yet to deliver since joining the firm in May 2010. The group's multichannel (online and mobile) business is now some way behind key rivals, whilst the success record for UK retailers expanding overseas is decidedly mixed. In addition, the recent dividends have only been maintained rather than grown, a stark contrast to arch rival Next. For now, despite the nation's love for the brand, M&S is yet to truly find its way...........