LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

M&S chairman tells investors there's no quick fix

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Tue, Jul 10, 2018
10:15 pm
Reuters
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

Shareholders in Marks & Spencer should not be overly concerned about its financial results over the next two years because those numbers are not that important to the clothing and food retailer`s future, its new chairman told them on Tuesday.

Retail veteran Archie Norman joined M&S as chairman in September last year and two months later the company detailed its latest attempt at a turnaround after more than a decade of failed reinventions.

The plan included a five-year programme of store closures and relocations to cut excess selling space in its clothing business, increased technology investment and moves to make a misfiring food business more competitive.

Private investors account for a little more than 11 percent of M&S`s share capital and there were 750 in attendance at Tuesday`s annual meeting at Wembley Stadium to hear for themselves what Norman had to say about the company`s progress.

"I don`t want to shock you all, but I have to tell you - for me - the results in the next two years are not the most important thing," he told the meeting.

"I hope that we`ll be able to deliver some decent results and I hope we`ll be able to please you, but that`s not the most important thing. We`re here to deliver a profitable growing business in five years` time. It`s not a quick fix."

M&S has reported two straight years of profit decline and analysts are forecasting a third when it reports 2018-19 results next May, though this summer`s soccer World Cup in Russia has delivered a sliver of unexpected good news.

As the England team has progressed to the semi-finals of the tournament, M&S has doubled sales of its waistcoats as fans clamour to emulate the sartorial elegance of team manager Gareth Southgate.

Nevertheless, shares in the company have fallen 8 percent over the past year and it broke with tradition by not updating on first-quarter trading this year. It does not plan to report to the market until it delivers first-half results in November.`BURNING PLATFORM`

The retailer said in May that it was modernising rapidly to survive - a theme Norman returned to on Tuesday with a stark warning.

"Both I and (CEO) Steve (Rowe) and the board are under no illusions, this business has a burning platform," he said.

"We don`t have a God-given right to exist. Unless we change and unless we develop the company in the way we want to, in decades to come there will be no M&S."

But Norman, who is most famous for his revival of supermarket chain Asda in the 1990s, did take issue with one private shareholder, Sunil Pal, who said M&S had become a "byword for failure".

"I think that is an exaggeration. There`s a lot that`s very successful around the company," said Norman, pointing to the strength of the M&S brand, its products and people.

"There`s a fine border line between stating it as it is and self-flagellation. I`m in the former camp, not the latter."

Another shareholder asked if M&S would consider joining forces with another retailer, given that Tesco has taken over wholesaler Booker and is forming a buying alliance with France`s Carrefour, while Sainsbury`s has proposed a takeover of Walmart`s Asda.

"As a board of directors it`s our obligation never to be closed-minded about these things, but ... we`re not today and I don`t think it would be right to do so," said Norman. "Our future is in our hands."

Norman`s comments had little effect on the company`s share price, which closed 0.5 percent down at 311 pence.

Chief Executive Rowe, meanwhile, told the meeting that he was "completely reviewing" the retailer`s Sparks loyalty card, which is held by about 7 million shoppers.

"We recognise that the scheme and the points and prizes conversation ... is not adequate for the loyal customer," he said.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

LATEST NEWS

EC likely to announce dates of assembly polls in Tamil Nadu, Assam, Kerala, Bengal on Friday

BSSC 1st Inter Level Combined Competitive Mains Exam 2014 result declared; check and download it from bssc.bih.nic.in —Steps here

Bharat Bandh Today: Check FULL List of where it will impact daily life

In chat with Anil Singhvi, analyst Vikas Sethi picks Jindal Saw, REC as top buys for big short term gains

Petrol, Diesel Price – Fuel prices remain unchanged on Friday; expert tells money making strategy on Oil futures

''Metro Man'' E Sreedharan formally joins BJP

Naandhi Box Office Collections Worldwide: Shouting success! Blockbuster justice! Allari Naresh says thanks to fans for so much love

Mid-cap Picks with Anil Singhvi: Want big gains? 3 stocks to buy - Anant Raj Industries, Shanti Gears and ITD Cementation

UPJEE (Polytechnic) 2021: Dates announced; Check where to apply, how to apply and other details here

SBI SME Gold Loan: Get this SBI business loan up to RS 50 lakh at 'attractive' rate without any financial document

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved