BBC news reported that by the middle of next week 30th May 2018, Marks and Spencer will discover whether it will remain in the FTSE 100 or whether it has lost its place as a British blue-chip stock. The retailer has been a member of the FTSE 100 since the index was formed 34 years ago. But next week, FTSE Russell will conduct its quarterly reshuffle of the index which could see M&S relegated to the FTSE 250 and online grocer Ocado rising into the leading ranks.

Looking at the retailer from a transformation perspective we begin to analyse the reasons for the decline.

Strategic Alignment

Current state

Macro Market movements

130 year history started in 1884 in Leeds

2018 still number 1 in mens and womens wear.

Ideal customers are aged 8-80

Nations favourite high street store

Simon marks transformed the business in the early 1900s

Food + wine account for 60% of business

Fashion accounts for 40%

Quality clothing at affordable prices to middle classes (key USP)

Brand advertising a la food adverts (key strategy)

Staff happiness (key strategy)

Reduce property portfolio by 2022 to 100 stores

Glory days are long gone.

Profits falling

High street shopping habits are changing in the face of online retailing

Sticking with British manufacturers part of the problem (expensive supply chain)

Competitors are stepping up their levels of innovation a la Primark with more expansive supply chain

M&S boss says firm too ‘inward looking’



Business Capabilities

Current state

To Develop

End of 20th century M&S made £1bn turnover, the next year this figure halved

21st century making £0.5bn per annum

Had great success with quick turnaround of new fashion in the 1980s

Tried to counteract competitors by introducing instore fashion arms George and Per Una which contributed to losing its distinctiveness

Took their eye off competitors, felt too big too fail, discounted upstarts like Primark and Topshop, finding it hard to change the course of the juggernaut (more online)

USP – Customer service, Amazing staff loyalty

Competitors use overseas suppliers to lower supply chain and operating costs

M&S has lost ground by not following this trend and staying British

Web based manufacturers – Fast fashion online retailers are producing new lines at record speeds and getting them to market quicker



Systems Architecture

Current state To Realign
Computerised analysis of products, sales

Impact on the high street (more shopping online)

Impact of the intelligent shopper


New approaches of the online retailers

24 hour turnaround of new fashions or products

Lower operating costs


Solutions Implementation

Current state Benefits to realise
Forming new collaborations with social media stars for advertising and marketing

Recent advertising campaigns have been too broad (ages 30-80)

Reduce physical high street presence


Should concentrate on core customer – 50+ maybe?

M&S need a radical change to maintain their position in the market

Mr T Says,

Reduce costs by reducing the number of high street shops.

Improve operating effectiveness and costs by rationalising the supply chain.

Improve customer satisfaction by getting products to market faster using online manufacturers based anywhere in the world.

Remember Selfridges and their fabulous windows. Market movements “DRIVE” businesses to transform at some point in their lives.


If you’d like some help transforming your organisation then give us a call on 0116 2325201 or 07816416595 for an informal chat.

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