Insolia Mentioned by M&S CEO - Sales UP 70%!

Marks & Spencer boss Marc Bolland says the chain benefits from shoppers looking for quality

Zoe Wood
guardian.co.uk, Wednesday 6 April 2011 20.17 BST

Marc Bolland said M&S was taking daily readings to gauge the attitude of the 21 million shoppers who visit its stores every week and that confidence was "consistently low" during March. However, he said the consumer mood had not "hit the wall", as other chains – such as Dixons, which issued a profit warning last week – had suggested, and there had been no jolt after the budget.

"Consumer confidence in February and March has been low but stable," said Bolland, who predicted trading would get tougher as consumers are hit by government cutbacks, rising prices and the expected interest rate rises. "We see an environment out there that for the coming year will be absolutely challenging because commodity pricing is up and we know discretionary spend will be down."

M&S's warning came on the day a swathe of tax and benefits changes kicked in and just a day after former Asda boss Andy Bond predicted there would be two years of misery for high street retailers as the financial crisis hit home. Bolland's caution came as M&S reported flat underlying sales for the fourth quarter, a better than expected outcome that was buoyed by consumers' willingness to splash out on products such as its "Stormwear" water-repellent suits and "Insolia" high heels, which it claims won't hurt your feet even if you dance all night.
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Bolland said his vision for the business, set out in November, was building momentum. Last week he revealed plans to re-enter the French market – a decade after it pulled out of the country. He also said M&S's celebrity-laden spring advertising campaign featuring Dannii Minogue and Twiggy was "having a bigger impact than the adverts launched last year".

When Bolland took over from Sir Stuart Rose last May he complained M&S did not cash in on its heritage as an innovator and this year has seen ads dedicated to both Insolia and Stormwear. Sales of M&S shoes with Insolia, which boast a contoured insole that M&S claims transfers the weight from the forefoot to the heel, jumped 70% on the back of the campaign starring model Lisa Snowdon.

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