'ODD QUESTIONS' FROM M&S INVESTORS
Sliding profits may have been on shareholders' minds when they gathered for Marks & Spencer's annual general meeting today, but many seemed just as concerned with the issues of plunging necklines and comfortable slippers.
Chairman Robert Swannell was given the task of handling a colourful array of questions from small investors after the retailer unveiled a twelfth successive quarter of sliding sales in its general merchandise (GM) division.
It was also the first AGM to be held since the group revealed its third year in a row of falling yearly profits.
But Mr Swannell appeared to win over many of the hundreds gathered for the meeting at Wembley Stadium with a frank admission that the group must do better.
He said: "We have made it very clear, we didn't meet our expectations - we are not trying to hide the fact. No bonuses were paid as a result of it."
Chief executive Marc Bolland tried to woo the hall with the "stunning" revelation that Marks's Paris bakery was its best performing in the world - comparing it to "bringing coals to Newcastle".
But the Dutchman and former Morrisons boss, who has seen success in the retailer's food division but disappointment in general merchandise, was clearly not everyone's cup of tea.
One shareholder pointedly told him: "You are a bread and butter and baked beans expert. That's your forte. Clothing is not."
Another said: "This must be the slowest turnaround of a ship in history."
Style director Belinda Earl, who has the key job of making Marks's clothing offer more attractive, made her presentation armed with a series of crowd-pleasing figures and pledges on a better range of size ranges.
The former Jaeger boss talked up the "chic tailoring and sumptuous fabrics" now on offer as well as "hero pieces" such as a tribal print dress.
But she also addressed more bread-and-butter matters, revealing that one in five men wore M&S slippers - which are now all to be fitted with special insulation to keep customers' feet warm.
Other innovations included suit and trouser buttons that do not fall off and "super crease" trousers.
Meanwhile, Ms Earl said better availability of coats and dresses in stores had seen annual dress sales rise by 88% year-on-year with annual sales of lace dresses up to more than 120,000.
But it was Mr Swannell's charm offensive that ultimately won over the crowd - telling them: "You keep us on our toes."
He tried to assure shareholders that after three years of investment and transformation, M&S would soon start delivering better returns.
Pressed on the uncomfortable fact that the 130-year-old retailer's profits have now been overtaken by one particular high street rival, he even said: "I take my hat off to Next."
But he said that M&S would need long-term change to achieve success - which could not be achieved in just a quarter.
"You do it over a consistent decade, and that's what M&S is going to do," he said.
There was an awkward moment when one shareholder claimed that a Christmas M&S advert featuring Rosie Huntington-Whiteley stripped to her underwear was "utterly demeaning" at a time when women were being "routinely abused".
Mr Swannell rejected the suggestion it was "unseemly".
He was on surer ground when talking about his experiences as a secret shopper in stores and the advice he receives on clothes from his wife.
The chairman cheerfully listened as one female investor called for "longer tops to hide less elegant waistlines" and v-neck tops to accentuate bosoms.
"By the way, it's not just women," he gallantly interjected.
There was applause as another shareholder, complaining that some sizes were only available online, said: "We larger women are also people who want to shop in stores."
