Essay About Companys Stores And Product Sourcing

Sustainability Leader
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Company
Country United Kingdom
Number of Employees 67100
Web www.marksandspencer.com
Share
Market cap (mil) 7922
Currency GBP
High 52 week 3.8
Low 52 week 2.6
Last Price 3.5
Key Data 2003 2004E
Sales (mil) 8019 8406
EPS 0.24 0.26
P/E Ratio 14.45 13.37
Source: Bloomberg / August 13, 2004
Sales in
Alcohol Yes
Armaments No
Firearms No
Tobacco No
Gambling No
Source: IRRC, SAM Research
Company Description
Marks & Spencer Group p.l.c. (Marks & Spencer) is one of the UKs
largest retailers of womens and mens wear, lingerie and childrens
wear. The companys stores also sell food and home ware and
provide financial services. Marks & Spencer serves some 10 million
customers a week in over 375 UK stores. In addition, it has 155
stores managed under franchise and owns 43 stores in 28 territories
mostly in Europe, the Middle East, Asia and the Far East. In the US
the company is present with its supermarket group, Kings Super
Markets. UK Retail accounts for 88% of the groups total turnover.
In order to improve its profitability, Marks & Spencer has
restructured its business in the last three years and has geared its
strategy towards growth in its most important segment – clothing.
The company will also seek to reposition its Home business and to
increase the appeal of its food stores.
Sustainability Performance
The successful execution of the sustainability strategy at Marks
& Spencer positions the company as the leader of the industry.
This is supported by Marks & Spencers high level of
engagement across all three corporate sustainability dimensions.
Similar to last year, Marks & Spencer is one of the leading
companies in supply chain management. With 90% of clothing
sourced overseas, Marks & Spencer, like other companies, is
highly exposed to supply chain management related risks. The
companys principles and code of practices and initiatives help
prevent breaches of international standards and foster the
well-being of the suppliers workforce. In the environmental
dimension, Marks & Spencer scores significantly above the
industry average and takes a leading position in Transport and
Logistics, where it is on track to upgrade its entire UK and Eire
distribution fleet to the less polluting Euro III standard. Despite
early recognition, recent criticism about furniture made from
Indonesian wood highlights an area for improvement. The
company intends to tackle this challenge and improve standards
in the sourcing from wood furniture suppliers in the Far East in
2005.
Sustainability Scores
Total Score
0% 50% 100%
Industry Average on a Global Basis
Marks & Spencer p.l.c.
Best Company on a Global Basis within Industry Group
Economic Dimension
0% 50% 100%
Environmental Dimension
0% 50% 100%
Social Dimension
0% 50% 100%
Sustainability Leader
Member of DJSI World & DJSI STOXX
Marks & Spencer p.l.c.
Retail
SAM Research Inc.
Analyst:
Urs Schцn
Tel. +41 1 397 10 39
[email protected]
© SAM Research Inc. / Aug 31, 2004
Industry Driving Forces
Strong branding is a key success factor in the retail industry and requires companies to implement solid customer relationship
management and adaptability. Consumers, fair trade organizations as well as non-governmental organizations demand transparency on
product sourcing and production methods, thus requiring detailed codes of conduct for suppliers covering social and environmental
aspects. For food products, ensuring food safety along the supply chain is critical to provide consumer confidence. On the operational
level, key issues to address are energy consumption of stores, efficiency of the transport systems, and the use and disposal of packaging
and packaging waste. In addition,