Back in fashion: how we're reviving a British icon (Marks & Spencer)

Back in fashion: how we’re reviving a British icon (Marks & Spencer)

Rose S. Harvard Business Review, May 2007, Vol. 85 No. 5, Start page: 51, No. of pages: 8

Purpose – To review the turnaround achieved at British retailer Marks& Spencer over the last two years. Design/methodology/approach –Observes that Marks & Spencer achieved record profits in 1998 and subsequently suffered a major downturn in profitability. Presents a first-person account written by the man who became chief executive in 2004, noting that half-year profits reported in November 2006 were up more than thirty percent compared with the previous fiscal year. Attributes the company’s revival to a renewed focus on the basics of the business. Describes some of the problems facing Rose when he rejoined M&S as CEO after fifteen years leading other companies. Notes that the company had lost more than two thirds of its market capitalization between 1998 and 2000, adding that it was also fending off a takeover bid by Philip Green, who owns two of the UK’s largest retailers. Outlines the key elements of the turnaround strategy, stressing the importance of clarity, focus on a limited number of projects and the restoration of staff morale. Describes some of the key lessons to be learnt from this success story and sets out the goals intended to enable Marks & Spencer to achieve long-term, sustainable growth. Originality/value – Offers an insight into the challenges that this iconic company has had to tackle in recent years.ISSN: 0017-8012Reference: 36AN088

Keywords: Marks & Spencer, Retailing, Turnarounds