M&S accused of failing to stock lingerie and clothes for larger women as sales …

193

View
comments

Marks Spencer has been accused of failing older women with fuller figures who still want to look
chic.

Bosses were today asked to explain a lack of lingerie in large sizes, a failure to offer necklines that
flatter women with bigger breasts or tops to cover expanding waistlines.

Shareholders used the platform of the firm’s annual general meeting (AGM) to accuse the management of losing their way on serving their most loyal customers.

Decline: Marks Spencer have reported a 1.5 per cent fall in sales in clothing and homeware – marking the third consecutive year of quarterly decline

The attack came after the iconic chain
revealed another set of disappointing results showing that sales of
general merchandise, including clothing, have fallen for three years in a
row.

Criticism focused on the failure of chief executive, Marc Bolland, to deliver results despite spending
£2.3billion on improving stores, merchandise and expanding overseas.

Shareholders
were unhappy with the chain’s new website, while there was also
criticism of a ‘demeaning’ TV commercial featuring model Rosie
Huntington-Whiteley wearing lingerie.

Directors
were also lambasted for the fact that MS, which has been on high
streets for 130 years, has been overtaken by Next for the first time in
terms of annual profits.

The firm said the new design of the website, pictured, had been confusing to some customers – and certain sections of it would be simplified in the coming months

The
company has spent tens of millions of pounds on new fashion lines and a
celebrity based campaign featuring the likes of Annie Lennox, Emma
Thompson and Rita Ora.

Yet this failed to win over investors who lined up to take a swing at Mr Bolland and the board during a
question and answer session at the AGM at London’ s Wembley stadium.

Teresa Vanneck Surplice, who is in her sixties, spoke for the millions of older women who have long
seen MS as their first choice for fashion.

She pleaded with the MS style director, Belinda Earl, to bring in more designers that make clothes
specifically for older women, who typically have a fuller figure.

‘There
has been a huge change in the attitude of women to clothes over the
last five years. The 35-70 year olds want to look chic and have lovely
colours,’ she said.

‘Women when they are young have a fine waist line. But when we get over 35 they are not so good, so we need longer tops.

Despite numerous high-profile marketing campaigns for their clothing ranges – including this Leading Ladies advertisement featuring Rita Ora and chef Rachel Khoo – clothing sales were down 0.6 per cent

‘Also,
all your necklines are high, but when you have a generous bosom like I
do, you need a V neckline to make it look better. Older women like me
want to look smart, chic and colourful.’

She
said older women like to wear trousers, however she complained those on
offer from MS were ‘dull’, mannish and often only available in
black.

Another investor, Sharon Abrahamson, aged 57, a systems analyst from London, complained it was
difficult for larger women to find underwear in stores.

‘Lingerie
in the larger sizes are very often only available online. We larger
women are also people who shop in store – why can’t we find our sizes in
store when the smaller sizes are there?’ she said.

One
shareholder and former employee complained: ‘All too often, I, my wife
and friends visit stores and are disappointed with what’s on offer. The
styles, designs and colours just fail to meet our
expectations.’

Another regular at the MS AGM, John Farmer, hit out, saying: ‘When and how will this board stop
complacently apologising for underperformance and start to rectify three years of falling or flagging
clothing sales.’

Food sales were up for the firm, however, with like-for-like sales growing by 1.7 per cent. The firm’s CEO said the company was on track to open another 150 Simply Food stores in the next three years

Before joining MS, Mr Bolland was the successful chief executive at Morrisons. However, one
shareholder pointedly told him: ‘You are a bread and butter and baked beans expert. That’s your forte. Clothing is not.’

While much of the criticism was directed at Mr Bolland, the job of answering the questions was left to
chairman, Robert Swannell, who charmed shareholders saying their comments kept the management ‘on their toes’.

He
admitted MS has not performed as it should, saying: ‘We didn’t
meet our expectations and we are not trying to hide that. No bonuses
were paid as a result, that’s clear.

HOW MS HAVE LOST OUT TO NEXT

MS’s struggles with clothing – in particular womenswear – have been well documented.

Despite numerous celebrity campaigns – one of which featured the likes of singer Rita Ora, Baroness Lawrence, mother of murdered teenager Stephen, and artist Tracy Emin – and World Cup collaborations, its high street neighbour Next is outstripping it in the profit stakes.

In May this year, Next reported a profit of £695m for the 12 months between January 2012 and 2013.

Meanwhile MS revealed its pre-tax profits fell by 3.9 per cent to £623m in the year to March.

What’s more, Next – which has been selling clothes and homewear for 32 years – has reported a profit for five consecutive years.

The company says it is on track to make profits of up to £770 million this year.

Experts have credited the chain’s success to mutli-channel marketing (i.e. to a broad range of media outlets) and easy to use technology – including a simple website that customers like.

‘As a business and a board you have to do the things that are right to build it for the long term, even
if that is somewhat inconvenient. We have started creating a much stronger business and we will see it through.’

Mr Bolland insisted that the fashion press has praised its new lines and sales of women’s clothes are
beginning to show signs of growth, despite what he called ‘settling in’ problems associated with the
chain’s new website.

‘We believe that step-by-step we are on the right track. I’m really committed to what I’m doing,’ he
said.

On a more positive note, the chain’s food sales have continued to thrive.

Same store sales were up 1.7per cent over the 13 weeks to the end of June, which was the 19th quarter in a row of growth and much better than most high street rivals.

A spokesman for the company today told
MailOnline: ‘The website is a new platform that is owned and run by
MS. It is very different.

‘[the decrease] was not unexpected. Nothing has gone wrong. It was expected.

‘We think the investment in the new site was worth it, despite these slight bedding in issues.

‘We expect everything to be back to normal – and to be back in growth – by the peak period in November.’

Profits have fallen for three years in a row and have just been overtaken by rival Next, although MS is on track to meet City forecasts for a 2014-15 pre-tax profit of £663 million, up from £623 million in 2013-14.

A spokesman for the company said today the firm had launched 700 new lines in the division in the past quarter – showing ‘unparallelled’ innovation in the section.

Mr Bolland said
that the company’s food sales continued to ‘outperform the market’, and
it was on track to add another 150 Simply Food stores in the UK over
the next three years.

Analysts were divided over whether Mr Bolland, who joined the business in 2010, has begun to turn the retailer around.

The firms Chief Executive Marc Bolland, pictured, will today face shareholders at the company’s annual meeting at Wembley with the figures

Edison Investment Research analyst Neil Shah said: ‘With food continuing to outperform the market, a resurgent clothing offering helping to turn the corner for general merchandise, MS is on course to deliver one of its better all-round performances for several years with three quarters of the current financial year to play for.’

But analysts at Shore Capital said: ‘Overall, we deem this to be another disappointing update from the company, with general merchandising in the UK continuing to weigh heavily upon the group’s growth prospects.’

Shares in the retailer edged up in early trading.

Marks Spencer said its outlook for the full year remains unchanged, with the City forecasting a 2014-15 pre-tax profit of £663 million, up from £623 million in 2013-14.

THE RISE AND RISE OF MS FOOD

Today, the firm announced a 1.7 per cent increase in like-for-like sales for their food sector – the 19th consecutive quarter increase for the division.

Mr Bolland said
that the company’s food sales continued to ‘outperform the market’, and
it was on track to add another 150 Simply Food stores in the UK over
the next three years.

A
spokesman for the company said today the firm had launched 700 new food
lines in the past quarter – including their Summer of Flavour range.

Called Best of British summer last year, the range is already outselling its predecessor two-fold.

Featuring brightly-coloured packaging, the 159-product range is a picnic-style selection of foody treats.

Some of the highlights include a pulled pork and crunchy slaw sandwich and a spiced lamb and pomegranate flatbread.

Sweet treats include a double chocolate wrap and a mini cupcake selection – featuring raspberry and lemon cakes.

It also includes unusual desserts such as a Japanese Yuzu – a coconut milk-based pudding flavoured with citrus and chilli.

Elsewhere, MS have also recently introduced a range of Indian wines, specifically to go with their culinary range from the region, as well as a selection of game meats from Yorkshire and Northumberland.

Share or comment on this article