Annual Report 2014
  • A year of progress

    We have made significant progress in transforming M&S from a traditional British retailer into an international, multi-channel retailer.

  • General Merchandise

    The strategy we outlined in May 2013 was to refocus our GM business on the values that make us famous: quality and style. After a year of exciting changes, our customers are noticing the difference.

  • Food

    Our mission in Food is simple: to delight and excite our customers with high quality, good value products. The Food division has now seen 18 quarters of positive like-for-like sales growth.

  • M&S.com

    This has been a landmark year for M&S as two world-class infrastructure projects went live: our new M&S.com website and our 900,000 sq ft distribution centre at Castle Donington.

  • International

    Over the year, we grew sales in our International business, driven by strong growth in our priority markets of India, Russia, China, the Middle East and Western Europe.

Chairman's statement

“The retail industry is going through a profound period of change. Many of the actions we set out as part of our strategy three years ago, and have since implemented, put M&S in a stronger position to compete in this new world.”

Robert Swannell

Chairman

Chief Executive's overview

“As we come to the end of our three-year transformation programme, much of our investment is starting to bear fruit and we have built a business that is more relevant for the future of retail.”

Marc Bolland

Chief Executive

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Financial highlights

Group revenue

£10.3bn

+2.7% on LY

Underlying Group profit
before tax

622.9m

-3.9% on LY

Group profit before tax

580.4m

+6.1% on LY

Interim + final dividend

6.2p+10.8p =17.0p

level

Underlying Group
earnings per share

32.2p

0.9%

Group earnings per share

32.5p

14.8%

Focus on the UK

Through our 798 UK stores and our fast-growing e-commerce business, we sell high-quality, great value products to 34 million customers. Our UK business is split between Food (55% of our turnover) and General Merchandise (45%). We are market leader in Womenswear, Lingerie and Menswear.

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UK stores
highlights

General Merchandise revenue

£4.1bn

→ level

Food revenue

£5.1bn

↑ 4.2%

Number of UK stores

798

↑ 32 net new stores

M&S.com

After more than two years of development, we launched our new M&S.com flagship in February. The website marks a significant milestone in our journey to become a truly multi-channel retailer. Our strategy allows customers to shop with us however they choose – whether online, in stores or by phone.

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M&S.com
highlights

M&S.com sales

£800.1m

↑ 22.8%

Weekly site visits

5.5m

↑ 7.8%

Shop Your Way stores

498

↑ 22 stores

International

M&S’s international reach continues to grow and we now operate in 54 territories across Europe, Asia and the Middle East. We are also expanding our international presence with the roll-out of country-specific websites.

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International
highlights

International revenue

£1.2bn

↑ 6.2%

International stores

455

↑ 37 net new stores

Territories

54

↑ 3 new markets

Our people

Our people are at the heart of what makes M&S different. As we continue to transform the business, we have worked hard to ensure that we have the capabilities in place to drive the company forward. We have continued to make sure that our 86,000 employees throughout the business are confident, engaged and knowledgeable.

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Our people
highlights

Average number of employees

85,813

This figure represents the average total number of employees throughout the year and accounts for seasonal fluctuations
Employee engagement score

80%

Training and development days

1.5

per customer assistant

Plan A

Since it launched in 2007, our Plan A ethical and environmental programme has become part of the fabric of the business. We constantly update Plan A, and the next phase, Plan A 2020, sets out a new set of 100 commitments and represents another step along our journey towards becoming a truly sustainable retailer.

Visit marksandspencer.com/plana2014 to read more

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Plan A
highlights

Total Plan A 2020 commitments

100

Commitments achieved

9

Commitments on plan

79

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