Iliana Case

Marks and Spencer, founded in Leeds market in 1884 had grown some 100+

years later to become a major international retailer. As reported in the 1999

Reports and Accounts, M&S operated stores in 718 locations across 34

countries. About 80 per cent of 1998-99 Sales (₤8224 million) were made in the

UK via 294 stores and a relatively small, but growing mail order business. A

classification of UK stores is shown in Table C2.1.

Of the company's overseas outlets approximately 50 per cent were franchised

to local partners. M&S operated stores outside of the UK in the USA,

continental Europe (e.g. France, Spain, Germany and Luxembourg), the

Republic of Ireland, the Middle and Far East particularly Hong Kong. In the USA

the company owned the up-market preppy clothing retailer Brooks Brothers and

the King's Supermarket Chain. The decision was announced during 1998-99,The merchandise, especially ladies outerwear (e.g. trousers, skirts, suits,

jackets and knitwear) was not of modern design and cut. Indeed, the offering

was of staid fashion with little category breadth or depth. The colours too, it

was often said, were dreary an monotonous.

The attempt to satisfy in one store a broad array of age groups from say

teenage daughter via mother and aunt to grandmother was proving difficult.

Resistance, especially by the younger age group, to shop in a store selling

M&S labelled merchandise. Clearly for such a group there were brand

perception problems with ego-intensive fashion clothing items.

A lack of flair, cut, style and colour for the older female age group.

Famously, one 50-something female shareholder berated the board at the

1999 AGM. She explained she had visited a major M&S store to buy a

series of items for her wardrobe prior to going on a summer holiday. Failing

to find anything at M&S she had bought all her requirements from

competitive outlets. She challenged the mainly male board to understand the

physiological and psychological needs of the older woman!

Problems