Marks And Spencer Share Discussion Threads

[diku] 05/9/2016 21:10

There is a belief out there when IC recommends its a kiss of death...

God help us all & those connected to MKS....

[diku] 05/9/2016 21:05

Question is has anybody held accountable for Mks woes?....its a merry go round at the top!....if the sales are falling then has the Sales Director been sacked?...if they were buying the wrong stuff has the buying Director been sacked?...but if a staff on the shop floor is under performing or does something wrong then no doubt he/she probably gets laid off....

[philanderer] 05/9/2016 20:45

IC TIP UPDATES:

Marks & Spencer (MKS) has announced a head office restructure which will result in the loss of 525 jobs with a further 400 jobs to go in its IT and Logistics divisions. The move came after a review which found that M&S's operations had become 'too complex and inefficient' and is likely to shave around 1 per cent off the company's UK cost base.

We retain our buy recommendation.

[philanderer] 05/9/2016 20:28

It looks like working in the Civil Service at these MKS head offices .

[diku] 05/9/2016 18:50

Funny how when sales are suffering the mind goes into over drive with all these ideas of cost cutting....& when sales are good the mind goes into over drive throwing good money after bad who cares!!...is that what is taught in business schools?...

[philanderer] 05/9/2016 16:28

We`re just back to where we were thursday. Friday`s rise was surely down to the job cuts announced today which those in the know found out friday.

[diku] 05/9/2016 16:14

Not a good sign if closing lows of the day and below 350p....

[diku] 05/9/2016 15:40

And no doubt Marc Bolland laughing all the way to his bank....onto next project to milk some more....& mid to upper management laughing all the way to their bank at the time....but I don't blame them as they were just employed by you know who...


A big rationalization, particularly among mid- to upper-management, was a notable omission during his six years at the helm. He ought to have tackled headcount himself.

[philanderer] 05/9/2016 15:26

Fair play to the new fella. At least he`s started the ball rolling.

Now to shut some of the uk stores and even more office jobs in november.

[diku] 05/9/2016 15:04

You will be surprised to know how many of the bosses of big companies are out of touch with day to day running of their businesses....

[philanderer] 05/9/2016 13:13

Bloomberg...

Under his predecessor, Marc Bolland, head office staff numbers ballooned 30 percent between 2011 and 2016.Some of this increase was due to M&S bringing its website operations under its own roof. The service was previously outsourced to Amazon.But Bolland allowed head office staff numbers to swell just as sales and profits were falling. A big rationalization, particularly among mid- to upper-management, was a notable omission during his six years at the helm. He ought to have tackled headcount himself.

Former M&S CEO Mark Bolland never tackled rising head office staff numbers during his six year tenure

"..But Rowe should go further. He is reviewing the group's international operations, and should prune its domestic store estate. That could have further implications back in the head office.

[diku] 05/9/2016 12:09

Below from the above post....its all very well removing people from the ground level but how about removing few from the board level without golden handshakes who have failed in their duties or were not up to speed with what was going on?...so who are these responsible people that allowed M&S to become too complex, inefficiencies & duplications failing accountabilities?....Does every Board Director know how M&S operates?....


The review highlighted that M&S has become too complex and inefficient and today's proposals aim to address this by removing duplication, driving accountability and establishing clear, consistent processes; which in turn will strip out unnecessary costs. M&S has used the basis of the review to reshape and redefine the organisational structure in line with its strategy.

[philanderer] 05/9/2016 12:02

Alphaville:

11:52AM

PM
M&S have confirmed these head office sackings

PM
400

PM
hxxp://www.investe...1609051138439578I/

PM
The proposals are centred on plans to reshape and redefine the organisation by reducing the number of Head Office roles by a net reduction of c.525 roles and also reduce the number of roles permanently based in central London by c.400, across IT and Logistics, as part of the retailer's strategy to work more simply and more efficiently. The net reduction would be achieved through a combination of fewer contractors, natural attrition and redundancies for M&S employees.

BE
Think Kleinmanwire said 500 over the weekend.

PM
Should the proposals go ahead they would deliver significant cost savings. It is expected that annualised operating cost savings would be c.1% of the UK cost base. Cost growth guidance for the current year remains unchanged at c.3.5%. There would be a non-underlying cost of c.£15m which includes the changes to the senior management team that have already taken place.

Marks and Spencer Group PLC (MKS:LSE): Last: 351.70, down 2.4 (-0.68%), High: 356.00, Low: 349.50, Volume: 2.44m

PM
The review highlighted that M&S has become too complex and inefficient and today's proposals aim to address this by removing duplication, driving accountability and establishing clear, consistent processes; which in turn will strip out unnecessary costs. M&S has used the basis of the review to reshape and redefine the organisational structure in line with its strategy

BE
Not sure it does much for the investment case, really.

PM
Hang on

PM
- M&S employs over 3,500 people working across its seven UK Head Offices

PM
It has seven head offices

PM
In the UK

BE
Yeah, I was moving towards that.

BE
What would help M&S's investment case -- memo to Steve Rowe -- is to light an actual bonfire under the organisational structure.

BE
First thing to to would be to separate -- as in, actually separate, reporting each side individually -- the food and the general merchandise business.

BE
The result of that will be that the GM business will look even worse than everyone thought, mostly because it's operating on freeholds whereas the food business has a lot of lease costs.

BE
Bundling them together, as M&S does as the moment, creates an artificial impression of both businesses and probably helps out a lot of GM people in its seven-headed HQ.

BE
Split 'em. Let's see how bad clothing actually is. Let's start from there.

11:58AM

[philanderer] 05/9/2016 11:55

Confirmed : RELEASE

Marks and Spencer : & SPENCER ANNOUNCES PROPOSED CHANGES TO UK HEAD OFFICE STRUCTURE


Marks & Spencer announces today that it will be entering in to consultation with its employees with regards to proposals to make significant changes to its UK Head Office structure. The proposals have been developed by M&S following a detailed review of the organisation and an analysis of its processes and do not impact on M&S store employees.

The proposals are centred on plans to reshape and redefine the organisation by reducing the number of Head Office roles by a net reduction of c.525 roles and also reduce the number of roles permanently based in central London by c.400, across IT and Logistics, as part of the retailer's strategy to work more simply and more efficiently. The net reduction would be achieved through a combination of fewer contractors, natural attrition and redundancies for M&S employees.

Should the proposals go ahead they would deliver significant cost savings. It is expected that annualised operating cost savings would be c.1% of the UK cost base. Cost growth guidance for the current year remains unchanged at c.3.5%. There would be a non-underlying cost of c.£15m which includes the changes to the senior management team that have already taken place.

Steve Rowe, M&S CEO, said: 'M&S has to become a simpler and more effective organisation if we are to deliver our plans to recover and grow our business.

'It is never easy to propose changes that impact on our people, but I believe that the proposals outlined today are absolutely necessary and will help us build a different type of M&S - one that can take bolder, pacier decisions, be more profitable and ultimately better serve our customers.'

'We remain committed to investing in store staffing and improving our customer experience and therefore our store colleagues are not affected by this proposal.'

The review highlighted that M&S has become too complex and inefficient and today's proposals aim to address this by removing duplication, driving accountability and establishing clear, consistent processes; which in turn will strip out unnecessary costs. M&S has used the basis of the review to reshape and redefine the organisational structure in line with its strategy.

M&S will be entering in to collective consultation with its employees with regards to these proposals via its network of independently elected employee representatives, the National Business Involvement Group, which will give careful consideration to any alternative proposals.

- Ends -

[philanderer] 05/9/2016 10:27

Sure did , one in 14 million chance :-)

[diku] 05/9/2016 10:10

Those lottery winners did have a dream!....& it became a reality...

[philanderer] 05/9/2016 09:55

In the file marked 'In Your Dreams' ;-)

[diku] 05/9/2016 09:41

Now where is that bid or a tie up with Next?...

[philanderer] 05/9/2016 09:14

Nope, not in a million years.

One for the income portfolio if it sorts itself out damn quick and holds the dividend.

[albanyvillas] 05/9/2016 07:12

This is set to fly imho

[philanderer] 04/9/2016 21:35

Hopefully store closures will be announced in november.

[diku] 03/9/2016 18:00

Has MKS been signing off blank cheques to contractors all this time?...cost cutting is generally viewed as good news for share price..

[qantas] 03/9/2016 17:48

Still saving loads of money.....