Marks & Spencer: great food, bad clothes

Sales are up, but clothing needs a rethink.

With total UK sales up by 2.6 per cent, the headline on today’s M&S results is that the company has delivered the strongest quarterly trading growth in two years. While this is true, such a statement belies a whole host of underlying issues; many of which are, as of yet, unresolved.

Despite the solid overall growth, there is a strong sense of déjà vu in the latest set of numbers: the polarised performance of falling clothing sales and rising food sales continues and seems to have become somewhat entrenched. Indeed, the polarisation is even sharper this quarter given the particularly robust uplift in food sales – an uplift which has saved M&S the embarrassment of a weaker set of trading results.

That this pattern has repeated itself over a relatively long period of time raises two critical questions: can the negative trend in clothing be reversed and, if so, what does M&S need to do to reverse it?

On the first point, it is almost impossible that M&S will ever go back to the pre-1998 heydays when its clothing market share was at its zenith. The market has changed too fundamentally since that time and the more fragmented landscape makes it impossible for a player of M&S’s configuration to take the share it once did. However, that does not mean to say that M&S’s market share could not be bigger and it certainly does not mean that M&S should accept recent declines in share as being inevitable. It has the potential to do much better; whether it has the will is another matter.

The fundamental problem with M&S is that it still thinks and behaves like a middle market clothing retailer of yesteryear. Many attempts have been made to shift this attitude and it would be unfair not to recognise that some progress has been made. However, old habits die hard and M&S’s middle market DNA still shows through in so many ways, especially on the product front.

There are two critical issues with product. The first is that there is a lack of targeting and empathy with core customers, which means that the offer is frequently not one that is seen as being "must have" – something that is now critical in clothing. The second problem relates to product merchandising. Although M&S’s newer stores are a significant improvement over what came before them, there is still a feel of drowning in a ‘sea of product’ which makes it hard for consumers to pick out key trends and styles. This method of merchandising continues to be out of step with the more segmented way in which many competitors present their offers and means that M&S often lacks the ‘"exclusivity" or "excitement" of rivals.

A further issue is M&S’s focus on the"value" part of its range, which we believe is too great and is an underlying symptom of a relatively weak offer and lack of confidence in clothing. While the market is undeniably more price sensitive, the key issue for consumers is value for money rather than just low prices. In the case of M&S, this is about adding value and interest to clothing ranges so that customers are willing to pay more. This, and not a focus on price, needs to be the direction of travel going forward.

With demand in a lacklustre state, the above would be enough of a problem if competition was static; however, other players have been aggressive both in expanding and in developing their ranges and propositions. In light of this, M&S seems to have been increasingly left behind. A prime example is John Lewis which has a strong customer overlap with M&S: the reinvigoration of its fashion offer might not have contributed much to M&S’s declining clothing share, but it – along with many other players – will have certainly nibbled away at it. Next has also improved its fashion credentials, as has Debenhams through its own brand offers; meanwhile, Primark continues to lead on price. Collectively, all of these players – and more – are putting the squeeze on M&S.

Interestingly, the food business provides a template for how M&S should approach clothing. Here M&S is unashamedly directional; it does not try to be all things to all men. The stance, while recognising the need to provide good value for money, is strongly skewed towards the premium end of the market. Brand segmentation is clear and innovation ensures that various parts of the range are regularly refreshed. All of this is supported by a marketing effort that creates customer interest and genuinely reflects the strengths of the proposition. All of these factors have contributed to an impressive market beating performance over the last quarter.

Overall, despite the lacklustre results, M&S remains a solid player and has significant potential. There are plans in place to remedy some of the issues inherent within the business, but the remainder of 2013 will need to be a year of delivery and action if the company is to turnaround its fortunes.

Photograph: Getty Images

 Managing Director of Conlumino

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Meet Anne Marie Waters - the Ukip politician too extreme for Nigel Farage

In January 2016, Waters launched Pegida UK with former EDL frontman Steven Yaxley-Lennon (aka Tommy Robinson). 

There are few people in British political life who can be attacked from the left by Nigel Farage. Yet that is where Anne Marie Waters has found herself. And by the end of September she could well be the new leader of Ukip, a party almost synonymous with its beer-swilling, chain-smoking former leader.

Waters’s political journey is a curious one. She started out on the political left, but like Oswald Mosley before her, has since veered dramatically to the right. That, however, is where the similarities end. Waters is Irish, agnostic, a lesbian and a self-proclaimed feminist.

But it is her politics – rather than who she is – that have caused a stir among Ukip’s old guard. Former leader Paul Nuttall has said that her views make him “uncomfortable” while Farage has claimed Ukip is “finished” if, under her leadership, it becomes an anti-Islam party.

In her rhetoric, Waters echoes groups such as the English Defence League (EDL) and Britain First. She has called Islam “evil” and her leadership manifesto claims that the religion has turned Britain into a “fearful and censorious society”. Waters wants the banning of the burqa, the closure of all sharia councils and a temporary freeze on all immigration.

She started life in Dublin before moving to Germany in her teens to work as an au pair. Waters also lived in the Netherlands before returning to Britain to study journalism at Nottingham Trent University, graduating in 2003. She subsequently gained a second degree in law. It was then, she says, that she first learnt about Islam, which she claims treats women “like absolute dirt”. Now 39, Waters is a full-time campaigner who lives in Essex with her two dogs and her partner who is an accountant.

Waters’s first spell of serious activism was with the campaign group One Law for All, a secularist organisation fronted by the Iranian feminist and human rights activist Maryam Namazie. Waters resigned in November 2013 after four years with the organisation. According to Namazie, Waters left due to political disagreements over whether the group should collaborate with members of far-right groups.

In April 2014, Waters founded Sharia Watch UK and, in January 2016, she launched Pegida UK with former EDL frontman Steven Yaxley-Lennon (aka Tommy Robinson). The group was established as a British chapter of the German-based organisation and was set up to counter what it called the “Islamisation of our countries”. By the summer of 2016, it had petered out.

Waters twice stood unsuccessfully to become a Labour parliamentary candidate. Today, she says she could not back Labour due to its “betrayal of women” and “betrayal of the country” over Islam. After joining Ukip in 2014, she first ran for political office in the Lambeth council election, where she finished in ninth place. At the 2015 general election, Waters stood as the party’s candidate in Lewisham East, finishing third with 9.1 per cent of the vote. She was chosen to stand again in the 2016 London Assembly elections but was deselected after her role in Pegida UK became public. Waters was also prevented from standing in Lewisham East at the 2017 general election after Ukip’s then-leader Nuttall publicly intervened.

The current favourite of the 11 candidates standing to succeed Nuttall is deputy leader Peter Whittle, with Waters in second. Some had hoped the party’s top brass would ban her from standing but last week its national executive approved her campaign.

Due to an expected low turnout, the leadership contest is unpredictable. Last November, Nuttall was elected with just 9,622 votes. More than 1,000 new members reportedly joined Ukip in a two-week period earlier this year, prompting fears of far-right entryism.

Mike Hookem MEP has resigned as Ukip’s deputy whip over Waters’ candidacy, saying he would not “turn a blind eye” to extremism. By contrast, chief whip, MEP Stuart Agnew, is a supporter and has likened her to Joan of Arc. Waters is also working closely on her campaign with Jack Buckby, a former BNP activist and one of the few candidates to run against Labour in the by-election for Jo Cox’s former seat of Batley and Spen. Robinson is another backer.

Peculiarly for someone running to be the leader of a party, Waters does not appear to relish public attention. “I’m not a limelight person,” she recently told the Times. “I don’t like being phoned all the time.”

The journalist Jamie Bartlett, who was invited to the initial launch of Pegida UK in Luton in 2015, said of Waters: “She failed to remember the date of the demo. Her head lolled, her words were slurred, and she appeared to almost fall asleep while Tommy [Robinson] was speaking. After 10 minutes it all ground to an uneasy halt.”

In an age when authenticity is everything, it would be a mistake to underestimate yet another unconventional politician. But perhaps British Muslims shouldn’t panic about Anne Marie Waters just yet.

James Bloodworth is editor of Left Foot Forward

This article first appeared in the 17 August 2017 issue of the New Statesman, Trump goes nuclear