Interview with Sir Stuart Rose

A pessimist would have shied away from an interview where they were likely to face tough questions regarding the very real economic struggle their business finds themselves in. But Sir Stuart Rose is no pessimist.

By far and away the biggest draw to the conference was an interview with the Marks & Spencer Executive Chairman. I was extremely enthusiastic to hear what he had to say now that we are in the midst of a credit crunch. Previously, I had witnessed him speak last summer at Marks & Spencer's HO (neighbouring the conference venue; the Hilton Metropole) where he predicted the tough times ahead to his staff. 

Unfortunately, Rose couldn't discuss M&S's year performance as it was in "closed period" but speaking in general terms, he didn't bury his head in the sand regarding sales figures and share prices and gave a typical example of the situation M&S find themselves in. Apparently M&S sells 22% of the UK's men's suits (although he was more likely than not Saville Row clad). He explained the company are still selling the same volume, but at a much lower price point. What was originally a £199 suit went to £125, and now is £99.

Giving advice on how retailers should try to get through the recession, he gave 3 points of wisdom, summarized below:

• Stick to your core values. (For Marks and Spencer, this means keeping Plan A central to their strategy, whilst giving value for money).
• Keep innovating. (Rose explained that he believed rate of innovation within a company is directly proportional to the rate of sales)
• And "grit your teeth".

Referring to the recent criticisms M&S has received from particular members of the press, Rose defended himself and the company by stating "If anybody seriously thinks M&S in 2009 is the same as in 2004, they obviously have a poor memory." 

When pressed for information of his eventual retirement, he implied it would be in 2011, unless  he was no longer wanted before then:

"I've got a sell-by date, like our food."

He summarized the interview with what he hopes to achieve before he leaves Marks & Spencer:

"I'd like to see the business have a clear passage through the slowdown, to have a coherent plan for here and overseas and a seamless and successful transition to new leadership."

Rising Stars of Retail

Featuring 3 award winning up and coming retailers, the next panel discussion was intended to explain to other retailers, how they are "leading the way forward". The panel was made up of Ian Jones (Managing Director of Azendi), Ben Phillips (Managing Director of Steamer Trading Cookshop) and Oliver Tress (Managing Director of Oliver Bonas).

The values of these companies are similarly alligned towards great customer service.

Azendi is a contemporary yet timeless jewellers where the displays are kept simple and classy; the jewellery range offers something for everyones taste (and to an extent, price range) and the staff are extremely helpful. A reassuring aspect of the company, is there ethics towards diamond dealing. "At Azendi, we insist that all our suppliers guarantee that all diamonds are from legitimate sources not involved in finding conflict and in compliance with UN resolutions".

If you live in London, you will probably be familiar with the Oliver Bonas brand - the lifestyle store/website specialising in stylish gifts. Whilst Tress was at university, he used to bring handbags and watches back on request from Hong Kong where his parents lived. The entrepreneur in him spotted a retailing opportunity which has grown to include 15 stores across London since 1993.  

 

Oliver Bonas cater for men, women and kids at all price ranges and apart from the products they offer, the brand is very proud of their exceptional customer service.

The Steamer Trading Cookshop is a family-run kitchenware specialist "passionate about what we sell and the customer service we offer". Ben joined the business in 2001 that his parents had set up in 1985 and has transformed the company from 1 store to 18. Their stores all have a very different look and the company tend to seek out unusual buildings to set up shop: all of which they feel helps to add to the customer experience.

Innovation Showcase: Part 1

My favourite and personally highly anticipated discussion was to be given by John Ryan (Stores Editor for 'Retail Week') and Lorna Hall (Senior Retail Editor for WGSN). 

I had used the WGSN website before to research upcoming trends for this Spring Summer when I did a placement within a M&S buying team last summer. 

John Ryan went straight into looking at examples of great, creative shop floors. There were so many examples but here is one particular one and I shall add more when I have time:

Rough Trade East

With a free WiFi lounge and a cafe at the front (with somewhat uncomfortable looking chairs), it is clear that the record store staff want you to stick around. The store opened in 2008and is situated in the trendy part of the east end, off Brick Lane, near Spitalfields. 

As you might imagine the interior tries to emulate the alternative or underground music scenes with an edgy black and white theme; the rough beaming and pipes kept on view as well as the exposed strip lighting. As with any music store with "indie" credibility, the vinyl collection is extensive. The staff are extremely knowledgeable and complete the service package by writing up their own personal summaries of the records.

A must for any musical connoisseur.

It's good not to know everything!

A fascinating and engaging story of how the Dutch ex-Heineken COO with little retail experience, transformed the falling Morrison's brand into a success story, which isn't even letting the Credit Crunch knock it back down. 

Bolland feels his lack of retail knowledge benefitted him when he was appointed to CEO of Morrison's. Coming from an outsiders perspective, he didn't understand what the brand stood for and had to start from scratch in repositioning Morrison's, often acting against the advice of those "in the know". Speaking to real customers, he established that there was a feeling that the brand didn't offer the same service that say, the high street could.  

By weighing up the market competitors such as Tesco, Sainsbury's, Waitrose and Asda, Bolland established that he wanted to position Morrison's as a predominantly food retailer (when everyone else was moving into non-food) with competitive yet quality product. He made the decision that every single penny needed to go into making the food valuable and fresh. Today Morrison's is the only supermarket who buy entirely from farmers. 

Bolland also discussed their adverts featuring celebrities but stressed that the likes of Denise Van Outen and Alan Hanson were real Morrison's shoppers who appreciated value and fresh produce. When questioned on pumping lots of money into flash advertising, he responded by stating that there was very little increased budgeting for their ad campaigns and that the real difference was in the advertising approach.

Retail Week Conference '09

It has been a hectic couple of days. I flew down to London on Tuesday morning and went to visit some fabulous retail consultancies. Then on Wednesday and Thursday I was given the fantastic opportunity to help out at the annual Retail Week Conference featuring some of the biggest names in the industry.

I learned so much from the experience I shall have to write all about it over different posts so bear with me. Thanks to Jo and Stuart at Emap who allowed me to become part of the team for 2 days!