Our Year in Review 2020
Prior to the Covid-19 impact, both major businesses were making good progress in implementing the transformation programme. However, the trauma of the Covid-19 crisis galvanised our colleagues to secure the future of our business. We are determined to learn from our response to the crisis and accelerate our transformation to ensure that M&S is changed for good.
At a glance
In the face of an unprecedented global crisis, the best has been brought out of our 78,000 colleagues who have worked tirelessly to deliver for our customers.
Together we have strived to secure the future of the business and, as we emerge, our “Never the Same Again” programme will accelerate our transformation and fulfil our potential to deliver long-term, sustainable and profitable growth for our investors, colleagues and wider communities.
Overview
£10.2bn
(-1.9%)
Group revenue
£67.2m
(-20.2%)
Group profit before tax
£403.1m
(-21.2%)
Profit before tax and adjusting items
3.9p
(-70.7%)
Total dividend
(No final dividend for 2019/20)
Chairman & CEO
Archie Norman, Chairman
The manner in which our colleagues have been galvanised to act with pace and agility gives us confidence we can emerge stronger, as a faster, more streamlined business. That is why we have drawn up our 'Never the Same Again' programme to harness our new habits and use the lessons of this crisis to make what feels like three years progress in one.
Steve Rowe, Chief Executive
Our response to Covid-19 is explored throughout this report but in short, I have never been prouder to work for this business. The care and commitment our colleagues have shown to our customers, their teammates and our communities has been inspiring to see. M&S has faced this crisis in the same way we have met challenges throughout our history. Each member of the M&S family has pulled together and responded with agility and pace to show our customers that they can trust M&S to be there for them and their community in the ways that matter most, and I would like to extend my personal thanks to them all. They are what makes this business special.
”
Our response to the Covid-19 crisis
Our performance
Food: Performance this year
The UK Food business outperformed the market, increasing UK Food sales by 2.1%, as changes to range, value and customer communication took effect.
Like-for-like performance was up 1.9% and strengthened through the year, including an estimated 0.3% benefit from the effects of Covid-19 in March. Operating profit before adjusting items increased 11.2%.
Food: Never the Same Again priorities
While the shape of trading has been affected by the change in customer shopping patterns during Covid-19, we maintain our belief that we have an opportunity to double the size of the M&S Food business. The impact of Covid-19 has affirmed our strategy to create an even better value, differentiated Food business and our priorities to accelerate our transformation will be to develop a winning online Food business through the successful delivery of the Ocado switchover, and progress our end-to-end supply chain transformation.
Clothing & Home: Performance this year
Following a challenging start to the year, we made up for lost time through the second half, taking decisive action to trade the ranges through shorter clearance periods and improving availability. For the 8 weeks ended 22 February UK Clothing & Home like-for-like revenue increased 0.3%, driven by stronger trends at M&S.com, up until the beginning of the crisis.
Clothing & Home: Never the Same Again priorities
The crisis has rapidly altered customer behaviour for the future, with sharp growth in online channels which is likely to continue. We will accelerate aspects of the transformation to increase our relevance in a new consumer environment and our priorities will include bringing our move to ‘trusted value’ forward and turbocharging growth to become an online winner in Clothing & Home.
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