"Solid" results but poor sales

Full-year pre-tax profits were �739.8m for the 52 weeks to 3 April, up from �715.7m last year.

Profits before exceptional items were up 0.5% to �763.2m, which was slightly ahead of analysts' expectations.

But the results showed how M&S' sales have struggled. Like-for-like sales across its UK business fell 0.4%.

Despite falling sales, M&S has managed to shore up its profits by cutting costs.

There's some great stuff here, the problem is how would I find it? Lorna Hall, Drapers' Record Hear Lorna Hall's verdict on M&S' flagship store

"We have delivered financial performance which I would describe as 'solid'," said chairman Luc Vandevelde, who announced earlier this month he is to step down from his position.

But he added: "Clearly we are not satisfied with our sales progress."

M&S said there was "no news" on the search for Mr Vandevelde's replacement.

Long way to go

After a promising start to the year, sales of general merchandise - which includes clothing and household goods - fell in the final six months.

Food sales also fell on a like-for-like basis in the final quarter of the financial year.

Chief executive Roger Holmes admitted the company still had "a lot to do".

"Whilst we established new areas of growth in money and home this year, the initial surge in the recovery of our clothing and food business faltered," he said.

Poached

He said the firm was seeking to tackle its poor performance by "taking action covering our products, supply chain, stores and ways of working".

M&S COMPARED UK turnover M&S total retail �7bn M&S clothing �4bn Next �2.3bn Matalan �1bn UK retail trading space M&S 12m sq ft Next 2.8m sq ft Matalan 5.1m sq ft UK stores M&S 350 Next 350 Matalan 178

M&S has been facing tough competition from High Street rivals and the big supermarket chains.

Last week, M&S announced it had poached Kate Bostock from Asda to head up its womenswear section.

A revitalisation of Marks' core women's clothing range is seen as vital. Recent sales have been disappointing despite the introduction of new lines for ranges such as Per Una.

Your verdict on M&S:

I'm a woman in my 30s who loves clothes, yet I always seem to walk out of my local store empty handed. M&S need to concentrate on providing good quality classic clothes with a twist. I dislike the Per Una range as do my colleagues and friends. As an ex clothing buyer with one of M&S's old rivals I think they are getting the styles, prints and even shades wrong time and time again!
Helen Walker, Tunbridge Wells, England

M&S used to be style & quality! Now their clothes are for larger women, have no style and mostly appeal to those in their 80s - if you're after a nice twinset there's no better place! All M&S need to do is invest in some good fashion buyers to select clothes that are a little bit different, incorporate classic styling and good quality for today's young (slim) business women.
Sarah, Hitchin, UK

I worked full time for M&S from 1970-1990. It was a family-run company and they respected their staff. They led the way in the market but seem to have lost all that now. I still have contact with people working for them - they are just a number now and are never asked for their opinion, and M&S are trying too much to be the same as all the other high street stores whereas in the past all the others were following them. Break away and be forceful as the company used to be and promote your staff as the best there is. M&S used to say we only take the best staff - say that again and lead the way in how you present yourselves. If a customer is helped to spend their money they will always come back if only for the service. What about when we used to wear a sash saying 'customer service - happy to help'. Don't you mean that anymore? Get back to the basics - don't be a follower, be a leader
Liz Jordan , Ely Cambridgeshire England

Many firms advertise and have reasonable discounted prices from original retail value. I don't see many in M&S. I think the products are reasonable but not enough is spent on marketing & publicity. Perhaps they should also launch M&S directory sales as I don't see many outlets either. I hate going to big towns just to go to M&S.
Aishah Brown

M&S concentrate too much on women's clothes. Men like clothes too and I for one would love to see a larger menswear department.
Matthew Thomson, Merseyside, England

I only ever go in M&S for the food - they definitely get that right, good selection of highly tempting food at fairly reasonable prices. I'm not so sure about the clothes - I always feel I could get something very similar elsewhere for less money, plus a lot of the lines still seem quite dated to me, or aimed at the over 40s. The per una range is more promising, but still on the expensive side. I'd buy trousers for work from M&S if they were made from at least some natural fibre, but I refuse to spend over �30 on an ill-fitting pair of polyester and lycra trousers. Another plus point is the underwear though, one of the few things that can persuade me to spend money. They seem to get the range right on this front. Therefore: good things - food, per una, lingerie bad things - most of the clothes, price
Ellen, Bristol

I went into the Merry Hill store last Saturday and was confronted by hundreds of T-shirts. There were so many and they were displayed in such a nondescript manner that I didn't buy anything. So initially, I would change store presentation to display more capsule wardrobes to give people ideas. M&S also fails because it tries to be all things to all consumers and since the 90s, we want our clothes to be a statement about us. Why would I go to M&S for interesting work wear when I can go to Next and I know that this is their strength? Why would I go to M&S for up to the minute fashion and throwaway T shirts - prefer Top Shop, DPs or George@Asda. Cheaper & more expendable. However, there are things that I always get from M&S - knicks, bras (although La Senza is getting better), tights & food. I do like Per Una but find it one of the more expensive places that I shop. M&S has to stop trying to be the ubiquitous British retailer and concentrate on the things it does well. A difficult job....
Sarah Lea-Redmond, Birmingham, UK

M&S used to epitomise customer service. My granny would say "Oh don't worry if it doesn't fit, you can always take it back to M&S." Times have changed and M&S needs to lead the way in how they care for customers - not just how they can get more money out of us. They offer great standards, but it's SO boring.
Dan Frydman, Edinburgh, Scotland

Clothing-wise M&S have drifted too far from their classic, reasonably priced range. The Per Una range has some lovely very fashionable items but at such ridiculous prices! Most people only expect to wear such fashion for one season and therefore would rather buy a similar item for half the price elsewhere. Food-wise it depends on which store you visit as to what you are able to purchase. Some stores seem to only cater for the dieters amongst us!
Yvonne, Reading

We waited in a queue for around 10 minutes in the Salisbury store last Saturday. We almost walked to another till, but a woman in the queue in front of us told us that the other till was even worse. All I can say is, had it been a weekday or had I just been in a general hurry, there's no way I would have been so patient. And they're not going to make much money by having no salespeople on the tills.
Peter Hurford, Salisbury, UK

OK so our M&S branch is not one of the biggest and the Food Hall has had to fill a gap left by Sainsburys leaving its town centre location a couple of years ago but does lunchtime shopping have to be such a nightmare? Biggest problem is not enough tills open during their busiest period, so you can't buy even when you want to. And don't you just hate it when there's a long queue, only a couple of tills open and you see members of staff sorting out the hangers. Do they want my money? If you take a later lunch-break you still can't win - they have less staff on duty so queues are still long. They cut costs by reducing staff and expecting the public to queue. Not a good way to keep your customers happy. As for their clothes, they are too busy trying to compete with Zara, Next and Debenhams but don't bother to stock the basics like plain black skirts for work or lightweight jackets for Summer.
Sue Post, Chelmsford, Essex

People (I) want to go to M&S for, say, a classic white shirt for around �40, or classic wool trousers, not polyester like everywhere else or a classic black wool polo neck jumper (they did these last winter for �30). Surely the start of going down hill was stopping having everything made in England. Per Una is good, nice fashionable clothing for 30, 40 and 50 year olds and older. Don't think aiming for the younger market is the right way to go at all - they have plenty of shops to shop in. Isn't it the over 50s who have most spending power now and many of them still want good quality fashionable clothes. The linen trousers for �40 are tack in M&S. No pockets, thin and rubbish tie waist, and made in India! Better quality can be bought at most ladies stores. ALSO very few changing rooms!
Beverley Torrance, Sheffield, England

I used to buy quite a lot of clothes from M&S until I realised that I looked like a 70 year old golfer. It occured to me that I'm 27 and have never played golf, so I don't bother anymore.
Hugh, Manchester, UK

To Ellen - I am over 40 and wouldn't be seen dead in the clothes M&S sell these days. They seem to have spent far too much time and money making the stores look nice instead of concentrating on what we go in to buy - clothes. If only they could revert to buying British made goods of quality - that is what M&S does best.
Hazel, Nottingham, UK

I'm in my mid-30s and used to shop regularly at M&S. They had good quality basics, a bit like Racing Green. I can find nothing to buy at M&S now. Both the design and the quality has gone downhill. The Per Una range is too fussy, the other ranges are mid 20th century in design. Get back to basics: good fabrics, well cut, classic clothes like pencil skirts, flat fronted trousers, light sweaters and neatly fitted t-shirts.
Kate, Glasgow

I agree that quality has taken a sorry tumble. Knitwear when made in Britain used to be excellent. Now the fabric has become very thin indeed and seams are cut to the millimetre. I wander round looking in vain for something to buy. I am 75 and remember much more value in the past. Loyalty takes me into the store but I am usually disapointed.
Margaret Hine, Longfield UK

I used to buy clothes there but I want to buy something that fits. I don't want acres of polyester & viscose, with elasticated waists and hems trailing unfinished threads. M&S cannot compete with Matalan & TK Maxx so they shouldn't try. Give us well made work clothes that will last longer than five minutes in cotton, wool or linen, lose the twin sets and "mother of the bride" colours and go for clothes for working women who have money to spend and need to look good but don't want to waste money on designer clothes for the office. And cut the price of all the underwear by 25%. Haven't they done ANY market research recently?
Kathy, Marlborough, UK

Like most of my friends, now aged around 30, I used to go into M&S to stock up on underwear and socks, and while there I would buy a couple pieces of classic clothing to go with the rest of my wardrobe - plain T-shirts, polonecks, trousers. Then all the clothes started having patterns and twiddly bits added, so I stopped buying them. If you're paying classic item prices, you don't want a fashion item which will clash with most of the rest of your clothes. Then M&S stopped selling 100% cotton knickers, and lost most of the rest of their female customers!
HT, London, UK

First of all, let's give M&S some praise where it is due: they have great food. In the food department, they seem to have good instincts for what people want. You can always rely on their quality; and their prices have definitely come down, too. When it comes to clothes, though, they always seem to get it wrong. Years ago, when M&S was run by the family, the store made its reputation on good quality clothes at reasonable prices. For example, you could always get a good quality cotton shirt there at prices far lower than other shops charged. In fact, you could get all the basics there, and then tart them up with an expensive pure silk tie or other accoutrement and look smart and stylish. In recent years, however, M&S has lost sight of what made them great! Now they try and compete in the designer market. People who want to wear designer clothes, in my opinion, are not going to go to M&S for them. These people do not wish to be seen in something which many others are wearing. They pay more money, and they want more exclusivity for it. More exclusivity than M&S can give. Further, when I look around me in M&S's clothing department, men's or women's, clothes seem to have a cheap look about them, strange colours, and pricey, pricey price tags! For future success, M&S definitely needs to look back to their old winning formlua: quality at prices people can afford. That is their niche. They are not Harrods, they are not Next, they are not the penny bazaar down the street, either. They have forgotten what made them great!
Richard, Swansea, Wales, UK

Perhaps the reason for M&S's poor sales is simpler. This is an age where people live on credit. Unlike their competitors, M&S do not accept credit cards. If they change this policy, they may see an increase in sales.
DG, Bristol, UK