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UK core business

How are we investing in and growing our core UK retail business?

Home

Our Home business remains one of the fastest growing parts of our Group and one we have identified as having even higher growth potential. Our trusted reputation saw new customers gravitate to us during the year. So although the economy presented challenging conditions, our sales were up 1.1% on the year, despite Easter falling into the 2009/10 financial year.

UK Home sales

£471.3m +1.1%

Improve don’t move

Our customers trust the M&S brand, particularly when buying investment pieces such as beds and sofas. And in recent times, as customers have tightened their belts and the housing market has slowed, customers have also increasingly turned to M&S for homeware. We acknowledged this trend and introduced our ‘Improve Don’t Move’ campaign. As a result sales of items such as crockery, cushions and soft furnishings were strong, with customers knowing they could buy well-priced and lasting pieces to spruce up their homes.

Our locations

There are now 64 M&S stores that sell furniture but almost all of our 293 main chain-stores offer homeware and gifts. The number of furniture stores will increase as part of our modernisation programme – albeit at a slower rate, given our decision to pull-back on capital expenditure. Home will have more floor space in our new stores, with an example being Westfield in London.

We are also opening more standalone Home stores. In March we opened Cardiff Capital, the third standalone store and the first to include a food hall and 80-seater M&S Café. It joins our existing standalone home stores in Lisburn in Northern Ireland, and Barton Square in Manchester.

We will continue to open more standalone Home stores, with three planned this financial year in Cheltenham, Tunbridge Wells and Aberdeen.

Expanding the range

We continue to add new products and ranges to our home offer as a way of introducing our brand to new customers. This year we launched nursery furniture, white goods and M&S Energy.

Beauty

Our Beauty business has long been known for its quality make-up, fragrances and toiletries – in fact we sell 33 tonnes of Magnolia talcum powder every year. We are now also establishing a name for ourselves as experts in skincare – with M&S Formula Instant Fix Midnight Beauty Cream shortlisted in the 2009 UK Beauty Awards for ‘Best New Skincare Product'. At the same time as innovating our ranges, we will also be improving the position of our Beauty offer in-store and further clarifying our brands of 'Autograph', 'Essential Colours', 'Formula', 'Florentyna' and ‘per una’.

Looking ahead

We have a real opportunity to continue to grow our Home business. Encouraging greater shopping across departments by attracting food and clothing customers is an important part of our Home strategy going forward, and something we will achieve through our promotional plan and improved store layouts. Also important is the development of our website so we can showcase our products online for those customers who cannot get to one of our stores.

Sweet dreams

Photo of a baby's room with a cot and M&S home products

125 YEARS OF INNOVATION

Sweet dreams We introduced two ranges of nursery furniture in January 2009 – the Ruby and Oscar collections – which consist of a cot bed, changing unit and double wardrobe.

M&S Energy

Photo of white clothes on a washing line

125 YEARS OF VALUE

M&S Energy Launched in October 2008, M&S Energy rewards customers with vouchers for reducing their energy consumption. More than 65,000 accounts have already been opened with us.

Plugged in

Photo of the Apple Touch ipod

125 YEARS OF TRUST

Plugged in Seven of the top 10 best-selling home products are bought in our technology department.

BRAND FOCUS: HOME

  • BEAUTY
  • CROCKERY
  • FURNITURE
  • GIFTS
  • SOFT FURNISHINGS
  • TECHNOLOGY