Critical Overview Of The Retail Company Marks and Spencer

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Critical Overview Of The Retail Company Marks and Spencer

Introduction

Marks & Spencer, the high street retail chain, first took formation as a retail venture in 1894, becoming a listed company in 1926. The group generates almost all of its revenue from UK clothing and food sales. Marks has a chain of some 665 stores throughout the UK with a further 291 overseas in 40 different countries.

(Marks and Spencer, 2009)

This report will critically analysis the strengths and weaknesses Marks and Spencer has as a whole by interpreting past and present data from a variety of sources. This report will also look at plans for future development of products and services the company has and a brief look at their competitors, the influence they have on Marks and Spencer. Marketing Strategies used by Marks and Spencer will also be looked at followed by concluding comments of the business.

Graphs

Fig.1

Bar graph to show sales turnover over the last five years, figures are in terms of millions of pounds sterling.

Fig.2

Line graph to show the amount of sales growth over the last 5 years

Marks and Spencer- The Strengths and Weaknesses

Strengths

Marks and Spencer has a strong market position. The company is the market leader in the UK for general merchandise with 11% market share compared to its nearest competitor, Next, with just 6%. The company’s position is supported by the large amount of stores it has both in the UK and international.

(Datamonitor, 2008)

The business is also strong in terms of its International market which is every growing with most recently two stores being opened in China. An international market gives a company a “diverse” customer base which helps increase “stability of the business.

In 2008 7.8% of total revenue was accounted by international sales.

(Datamonitor, 2008)

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Marks and Spencer has been around since before the Second World War and over this time it has built up a good brand image which has enhanced its reputation. A strong brand image allows for more likely repeated business and customer loyalty.

Weaknesses

In the current state of the economy it is difficult for any high street retailer to increase sales however currently Marks and Spencer are suffering a significant loss in profit compared to previous years.

“M&S, which issued a profits warning in 2008 and said in January that Christmas ...

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