M&S Penny Bazaar.

During the week, British retail giant Marks and Spencer celebrated their 125th anniversary by launching a 3-day 'Penny Bazaar' in all of its stores.

M&S started as a simple Victorian marketstall in Leeds, and Sir Stuart Rose - ever conscious of the company's heritage - decided to launch the event where a number of items would be on sale for just one penny each. Items included cuff links, mugs, pants and purses. 

On average, 60 items were sold per second with a many stores selling out of the stock in just one hour.

At the flagship store in Marble Arch, many customers had been queuing outside from as early as 5am. My local store saw a queue outside right along the high street. 

Despite the tickets declaring 'When it's gone, it's gone', many customers were left disgruntled at the product on offer and it selling out so fast. I have to say, what did they expect when one of Britain's pricier shops sells items at 1p? Many customers were completely satisfied and what is always noticable about the M&S approach (an additional to Plan A perhaps) was that all money raised was going to charity. Another triumph for Stuart Rose! Of course some people are never happy. 

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."

Fit for a Sustainable Future

Day 2 of the Retail Week Conference kicked off with further discussion from Best Buy, Unilever and Argos.

However, it was a panel discussion about Corporate Social Responsibility that I was most intruiged by, particularly because of the companies involved. Jim Allaker (VP & General Manager of Nike UK & Ireland), Richard Gillies (Director of Plan A at M&S), Peter Marks (Chief Executive at The Co-operative Group), and David McCullough (Deputy Chief Executive of Oxfam GB).

The discussion began with how brands need to not lose focus of the strive for socially aware and sustainable production in the midst of a downturn. The Co-op is a brand that seems to lead the way in CSR (Corporate Social Responsibility).

Nike added that their new DNA is about sustainable performance and by 2011, all their shoes will have been made considering waste reduction, construction efficiency and using more environmentally friendly materials. I'm happy to see the importance Nike are now placing on CSR. Not bad for a company that for years seemed tainted with the reputation for turning a blind eye to appalling work ethics in their Asian production factories.

It wasn't until near the end that the "Clothes Exchange" between M&S's Plan A and Oxfam came up. 

I had already been aware of the campaign to reduce landfill waste, encouraging people to hand in their old, unwanted Marks and Spencer clothing to Oxfam in exchange for a £5 M&S voucher. I wasn't aware of it's success. 

Sir Stuart Rose has previously described the move as "a triple win - it's good for customers, good for people in developing countries and good for the environment." According to Richard Gillies, the success was also seen in M&S sales.

New M&S Portfolio

Marks and Spencer have today launched their 'Portfolio' range aimed at women of 45+. In response to a customer panel, women in this age group felt their needs weren't being met. 

Positioned between their Classic range and 'Per Una', the new Portfolio (aimed at bridging the gap between collections) line is aimed at a more sophisticated, fashion conscious woman who knows how to dress with style for her age.

Executive Chairman Stuart Rose has chosen one of the first supermodels, Marie Helvin as the face of the campaign. She is in good company alongside the likes of Twiggy, Lily Cole, Erin O'Conner etc who have been an undeniable factor in M&S's success.

London Calling.

Last night I got back from my very short trip to London where I met up with my ex flatmate (and long lost love) Kirsty and stayed in her student halls. I didn't get to do much shopping but I did get to look about Spitalfields again and went into the All Saints original store to look at what they're doing with their visual merchandising since my last visit.

Kirsty is doing a Masters in Art at the legendary Central Saint Martins (check out her blog of her amazing work) and it was great to go for dinner with her in SoHo and wander past her new uni.

I also managed to pop along to the impressive Marks & Spencer HQ (below) again where I got to speak to some of their buyers about their Spring Summer '09 trends and the current market. I did a placement during the summer with the Buying teams for Ladies Holiday wear and Leisurewear. The whole experience was amazing and I learned a lot. It was great to even revisit the building and be given the opportunity to work inside the building of the UK's biggest high street retailer. 

My only purchase of the entire trip was this vintage dress but I am so happy with it because it was such a bargain. Bought for £8 just round the corner from the M&S HQ. It looks as if it has been hand made. I don't suit long things because I'm pretty small so I am going to have it taken up. I love the sheer sleeves and the back is a great deal lower than the front. Watch this space for the finished garment.

Sad Christmas for the High Street

There's an interesting article on msn at the moment about the effects of the current economic climate on retailers. It mainly discusses the price wars between supermarkets but also mentions the current need for high street shoppers seeking bargains and deals. 

This is so evident in every shop window on every high street or mall nationwide and coming from a retailers perspective also, I know that we are trying everything to meet targets. 

Even the UK's biggest retailer, Marks & Spencer have reacted with one-day special 20% off day events. Executive Chairman of M&S Stuart Rose has said he is taking a "glass half-full" attitude to the struggling M&S sales from recent months. The one-day spectacular was a huge success according to Rose.

During the summer I was lucky to do a work placement within one of the Marks and Spencer Head Office buying teams and was privileged enough to sit in on an employee talk with Stuart Rose where he discussed the up-coming struggle ahead and dismissed the rumours of a take-over. I came away thinking he was one of the most charismatic people I'd ever came across and a very inspiring man to work for so I think if anyone is going to get the brand through a tough, competitive period, he is the man to do it.  

(On a further note, how good is the latest Christmas campaign advert featuring the nations favourites, Take That!?)