M&S to trial A-brand products

M&S to trial A-brand products

The food division of Marks & Spencer, the bastion of private label, is to trial around 350 A- brand products in 19 stores in the north of England. The trial which starts next month is designed to enable customers to buy “must have” products such as Marmite, Heinz Tomato Ketchup and Coca Cola, certain household products, such as Persil and Aerial and toiletries such as Colgate.

In total these will represent about 7% of the product range. The trial will last three months and if it is successful it will be extended nationwide.

The aim is to offer customers greater convenience and encourage them to do their weekly shop at the store rather than just pick up a few items. This is part of a strategy to make Marks and Spencer the destination shop for quality food which will be underpinned by extending the number of flagship and out-of-town shops as well as opening over 70 Simply Food stores. It currently has 173 of these convenience franchise stores in the UK and Ireland.

While announcing the financial results for 2007, chief executive Sir Stuart Rose, said the company was aiming to increase its market share in food from 4.3% to 5%. Food sales did increase last year, thanks to 8.7% of additional floor space.

“Despite tougher economic conditions in the second half, M&S had a good year," said Rose. The company delivered over £1bn of profit before tax for the first time since 1997/98. "We have returned £914m to shareholders through the buy-back of 7.4% of our shares and a 23% increase in our dividend."

“The Company did not meet its internal bonus targets set in April 2007 and consequently will not be paying a bonus. However, we will be paying £12.8m to store teams recognising their hard work in delivering great service and dealing with significantly increased volumes," he said. 
 

Published 26-05-2008 (14:50) by Helen Armstrong

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