Sir Stuart Rose: A thorn in the side of negativity

Finally, a recent drop in food sales sent shares in the firm tumbling, and City analysts now warn that the economic downturn could wipe at least a third off its annual profits.
Worse may be to come. Consumer loyalty is at a 10-year low and shoppers are reining in their spending.

But, sitting pretty a week after shareholders voted in favour of his new role, and though his desk is yet to bear a plaque carrying his title, Rose is ready to defend the brand's quality proposition.

‘What is happening to M&S is an economy problem,' says the man credited with masterminding the retailer's turn­around since taking the helm in 2004 to defend it from a takeover by Arcadia. ‘We have put actions in place that I am confident will help to deliver an upturn in performance over the next three months.'

However, Rose says there will be no major shift in marketing strategy from the retailer, whose ‘food porn' and ‘Your M&S' ads played an important role in restoring its health after a long decline. ‘The tone will migrate a bit and there will be more emphasis on why M&S is different, but we won't be making any radical changes,' he says.

More price promotions, such as the recent ‘Dine in for £10' campaign, aimed at luring back shoppers who have defected to cheaper grocers, are on the cards. The work, promoting two main courses, vegetables on the side, two puddings and a bottle of wine for £10, is what Rose calls ‘clever advertising'. ‘Any fool can knock 10p off something,' he says.

 
‘While advertising is important, it's not going to save our business. The only thing that is going to save our business is quality product,' adds Rose. M&S is boosting its investment in new product development, which Rose describes as ‘real, rather than "me too", innovation', and has no plans to launch a value range. It is also reviewing its food lines, including the size of packs, in a bid to fend off competition from premium own-brand rivals such as Tesco's Finest.

Rose is well aware of M&S' pricey image. ‘There is an urban myth that M&S is all posh, expensive food and prepared dishes,' he says. ‘Don't be deceived by the reports that say we are 15% more expensive than Waitrose - we are not.' He adds that M&S has lowered its prices over the past nine months, and last week launched its clothing department's summer sale.

Amid all this, the grocer has come under scrutiny for its decision to break with tradition and introduce branded goods. It is currently trialling household names such as Heinz and Marmite in the North East - a decision that, some claim, risks diluting the retailer's premium positioning.

‘People will say it is a last measure by M&S - "Rosey is in a bunker with his tin hat on so let's throw a few brands at him". But people want convenience,' says Rose. ‘It's a pain in the arse for me to sneak into Tesco with my dark glasses on, hoping I don't get spotted.
‘I won't pretend I wouldn't prefer Coca-Cola to M&S cola, but we will only introduce brands that add value or those we can't compete with.'

With the economic slowdown predicted to continue into next year, M&S faces another tough nine months. But Rose is confident that the retailer's high standards - ‘when you buy a bunch of my grapes they are all edible, and we don't sell potatoes with mud on them' - will see it through. He also maintains that consumers have a special affection for the brand.
‘If people are negative about us, it's because they can't get to us,' says Rose. ‘If M&S was not on the high street tomorrow morning, there would be an outcry.'