M&S profits rise - how?

M&S sees profits increase to £1bn at bbc.co.uk
"Overall sales were 5.1% higher at £9bn… For the year as a whole, UK like-for-like sales fell 0.5%… New stores and expansions helped M&S increased its shop floor space in the UK by 4.8% during the year … international sales were up by 16.8% to £712.9m, while [international] operating profits grew 33% to £116.4m. "

Maybe they attended the Let’s Talk More Profit seminar in Southampton!! It looks like they must have done.

So, how did M&S do it? Some permutation of:
- Increase prices
- Decrease direct costs
- Work the 80:20 – sack under-performing suppliers/staff(!?)/customers
Then
- Increase volumes – get more customers
- Get customers to buy more
- Get customers to buy more often

- Stop 'em leaving.

If its good enough for M&S then it must be good enough for us.


RELEVANT LINKS
M&S sees profits increase to £1bn – BBC article
Let’s Talk... More Profit seminar - more about the Barclays seminars
Let's Talk... More Profit in Cardigan and Swansea – blog entry
Sacking Customers – blog entry