Executive Summary
A mutli-store store retailer and financial services provider. Company has over 400 stores located throughout the UK, including its largest store at Marble Arch, London. In addition, the company has 150 stores worldwide, including over 130 franchise businesses, operating in 30 countries.
Company History
Marks and Spencer was established in 1884 by Michael Marks. The company started life as a stall on Leeds Kirkgate Market, with key developments in its history as follows:
- 1894: Michael formed a partnership with Tom Spencer
- 1904: the company acquired shop premises in Cross Arcade in Leeds
- 1920s: Marks and Spencer became a limited company and the St Michael trademark was registered
- 1930s: the company opened its flagship store in Marble Arch, introduced cafe bars to its stores, and also introduced a staff welfare service
- 1975: the company's first stores in Continental Europe opened
- 1985: the company's Chargecard was launched in the UK
- 1988: Marks and Spencer opened stores in Hong Kong and became the first UK retailer to make a pre-tax profit of £1bn
- 1999: the company launched online shopping
Since 2000 the company has launched branded clothing ranges, such as Per Una and Blue Harbour, and it has re-positioned itself as an ethical trader, having published its global sourcing policy in 1999.
Current Events
The retailer has experienced challenges in recent years, with declining sales and questions concerning product quality. [1]
In 2007, the company launched its campaign to reduce its impact on the enviornment, with aims including becoming carbon neutral, sending no waste to landfil, and helping customers and employees to live a healthier lifestyle.
In 2008, the company introduced a 5p charge per plastic bag, with the profits going to the charity Groundwork UK. Six months later, the result was an 80% reduction in plastic bags and £500,000 raised for the charity.
Stuart Rose recently indicated in an interview with the BBC that Marks and Spencer faced a 'tough year ahead'. [2] Following this interview in late 2008, the company has faced a challenging retail enviornment, although it would appear that sales have stabilised. Sir Stuart is still predicting that 2010 will be 'tough'. [3]
Business Model
The company made significant changes to its business ownership model in 2007/08, moving from expansion via franchising, to wholly and partly-owned subsidiares. This has proved successful in emerging markets and alongside the continuation of franchising, provides…
