We achieved growth in every area of home – our best performing business unit. In the face of growing pricing pressures, we continued to raise our quality standards, whilst significantly widening choice and lowering prices.

Sales for the year were up by 7.9%. In addition, in August 2007, we launched our first standalone home store in Lisburn, Northern Ireland, which performed ahead of expectations. We’ll be opening two more in 2008/09.

Down with prices, up with quality

We’ve successfully met the challenge of price deflation, maintaining our home prices at 12% below the high street average. Far from compromising on quality, we regularly upgrade our core ranges without increasing our prices. For example, in 2007/08 we upgraded our ‘good’ 100% cotton non-iron range in bedding, to 100% Supima cotton non-iron (our mid-priced sheet), while keeping the price the same.

At the upper end of the price spectrum, we have grown our Autograph branded homeware range, offering the very best of M&S quality in everything from bedding and bathrooms to furniture and home accessories.

Stretching the brand, extending choice

During the year we successfully trialled an extended range of electrical goods in 20 stores and online, selling market-leading brands such as Sony and Apple. We’ll be extending this range to 50 stores in 2008/09. A range of white goods, including fridges, cookers and washing machines, were introduced in Lisburn and online in 2007/08 and we will continue to expand this offer to new standalone home stores, as well as online.

Almost a quarter of M&S customers shop from our home range, and we want to attract more. To do this, we will continue to widen choice within existing home areas, and move into new categories such as gardening tools. We will also be redeveloping our beauty business, while continuing to grow our online service.