MARKS & SPENCER: M&S Weathering the storm

John Swinfield's Big Business

MARKS & SPENCER: Weathering the storm
Britain’s ubiquitous Marks & Spencer (M&S) with over a 1,000 shops and 78000 workers began as a market stall in the Yorkshire city of Leeds in 1884. Like other familiar high street names it’s had a difficult time but new financial figures are encouraging.
John Swinfield has known the company for decades. He recalls his friendship with the once-chairman Marcus Sieff and interviewed the current boss, Archie Norman, who at one time ran ITV and the supermarket chain ASDA, selling the latter to the US giant Walmart. As part of M&S’s attempts to rev up its poorly performing clothing sales it’s taken a 25 per cent stake in the eco-online fashion label Nobody’s Child. It’s been working with the brand for a year and has strengthened its involvement by taking a share in it. M&S.com has a close relationship with many well known suppliers including Clarks shoes and dresses by Ghost. Other brands it’s snapped up include the high-end Jaeger.
Archie Norman’s right hand man is the skilful chief executive, Steve Rowe. He’s an M&S lifer who started out as a 15-year-old Saturday boy; City rumours suggest Rowe may step down in a year or two. If M&S is finally on an upward trajectory, much of it is down to Rowe as well as Norman. Supermarket buy ups are in fashion. More Square Mile and Wall Street gossip has it that the US equity company, Apollo Global Management, has had M&S in its sights as a possible takeover target.