Marsha'S New CEO: Establishing Channels For Small Shareholders

Marks&SpencerGroupPLC (MKS.L)

M&S's new CEO has been steadily implementing the performance revitalization plan for the group after SteveRowe4 took office.

The price reduction measures coupled with the impact of Britain's off Europe led to the last quarter.

Sales hit the largest store sales decline in the past ten years - 8.9%.

At the annual general meeting this week, SteveRowe also put forward an unusual new idea to invite private investors to set up a small shareholder expert group to speak for the group's products, operation and rehabilitation plan.

In fact, such a small shareholder group has carried out experimental activities under the organization of M&S Marsha general store.

A group of all female investors over the age of 50 previewed the M&S women's wear series of Marsha's department at lunch and tea party some day. After the event, SteveRowe immediately decided to double the order of a knitted cardigan and add an additional number of colors. Other feedback included too many soft colored clothes and the need to improve the quality of products and the dress design of older women.

Small shareholders hold about 30% of Marks&SpencerGroupPLC's Marsha general store, and group chairman RobertSwannell praised them for being "very insightful". SteveRowe said at the shareholders' meeting that "you have us around, our business will grow."

Restarting the growth of clothing and home business is the top priority of SteveRowe. In his revitalization plan released in May, he proposed measures such as reducing the number of styles, cutting over 10% of 1/3 products, reducing discounts, improving product supply, quality, fit and increasing the number of salesmen in stores, but analysts pointed out that there was no change.

During the first quarter of July 2nd, the group had lowered the price of 1000 non food products, with an average decrease of 3%, and SteveRowe revealed that sales of these products had been growing strongly since then.

In addition, the number of promotions this year will be reduced from 9 times to 6 times in the past year, and will be further reduced to 4 next year. SteveRowe said that the group must give up the "drug addiction" of discount sales promotion.

M&S Marsha general store

Although it was the first time that SteveRowe served for M&S Marsha general store for 26 years, CEO attended the shareholders' meeting for the first time. However, he received a warm welcome from over 760 investors who came to the conference, until he called her aunt shareholders "MrsM&S".

An investor immediately retorted, "my name is not MrsM&S".

She criticizes SteveRowe as still living in the age of women dressed up from head to toe in Marks&Spencer dress, and points out that modern independent women do not like labels, and especially do not like to associate with a downhill retailer.

Retail experts point out that SteveRowe needs not only to listen to the advice of loyal customers, but also to attract consumers who have spurned M&S Marsha's brand to other competitors' brands.

Bernstein analyst JamieMerriman believes that the focus group's idea is good, and she hopes the group can produce data for analysis and support.

Marks&SpencerGroupPLC Martha's report on Thursday showed that group net sales grew by 1.3% in real terms in the first quarter, and the group revised the data to 0.4% lower than the same period last year. Chairman RobertSwannell admitted that it was an excellent internal team and had nothing to do with the auditor.

As for the important topic of Britain's departure from Europe, RobertSwannell has the same breath as other retailers executives, saying that Marks&SpencerGroupPLC Marsha and the whole UK face a period of uncertainty. Beyond that, other conjectures are premature.

He said groups focus on things that can be controlled and known.