Marks and Spencer: From a Kirkgate Penny Bazaar to London High Street Heavyweights

Posted on by E Curb Nottus
Commerce & Business, Local history, Retailing history

Before the principals of Marks and Spencer teamed up, the entity was singular, just the one aspiring retailer, Michael Marks, and of material necessity he started very small. A late 19th century immigrant refugee from the Russian Empire’s Byelorussian region, Marks launched his first penny bazaar stall in Central Leeds’ Kirkgate Market with start-up funding amounting to one £5 note – which he had borrowed! Marks met his future partner at this time, Thomas Spencer, and eventually went into business with him after the latter, a Yorkshire cashier, invested £300 for a half-share in what became Marks and Spencer✱.

Early days: Establishing a chain of “penny bazaars”
Michael Marks kicked off with a very basic business model: his initial stall in Leeds was a “one penny stall”, hence the business’ motto, “Don’t ask the price, its a penny”⊡. The early stall commodities focused on household goods, haberdashery, toys and a sheet-music business (note the early spelling of the store name with an errant plural ‘s’ in ‘Spencer’ in the photo at left). Marks (the more dynamic and “hands-on” of the partners) immediately set about expanding the business, first up establishing a shop in Manchester. By 1894 Marks and Spencer had graduated to a permanent stall in Leeds’ covered market (in 1904 they opened their first Leeds shop) and in 1901 concentrated its open market operation in Birkenhead on Merseyside.

Forging a regional retail identity
The two partners initially focussed locally, concentrating on Yorkshire and Lancashire, a new warehouse in Manchester (1897) became the early centre of the M&S business empire which numbered 36 branches by that time…the firm accumulated stalls (later on, shops) in towns and cities across the North of England (Manchester, Liverpool, Hull, Sheffield, Middlesbrough and Sunderland) as well as further south (Birmingham, Bristol, Cardiff, Swansea, etc) [‘The History of Marks and Spencer’, (h2g2, 2008/2012), www.h2g2.com].

Spencer
Marks

By the early 1900s Marks and Spencer was starting to yield a very tidy surplus, becoming a limited company in 1903. At this juncture Thomas Spencer decided to cash in and retire from the partnership with a nice “nest egg” of £15,000 (for his initial outlay of £300) [‘Thomas Spencer (Marks and Spencer)’, Wikipedia, http://en.m.wikipedia.org]. Sadly for both Spencer and Marks, neither got to enjoy their monetary success long – Spencer died in 1905, followed by Marks in 1907. Nonetheless the prestigious company name has long outlived the two founding principals, thriving into the 21st century.

The end of “British-only” and “home-brand only”
In the early 20th century M&S, entering into long-term relationships with British manufacturers, emphasised a policy of selling only British-manufactured goods, clothes and food were sold under the famous “St Michael” brand (named after founder Michael Marks). The fluctuating commercial fortunes of the company in the 1990s led to M&S relenting somewhat on this policy.

Textiles and food
By the Twenties M&S had moved into the sale of textiles in a big way (launching its own laboratories to commercially produce new fabrics for the British market). In 1931 it added food to its portfolio of products…M&S’s own food technology department (from 1948) allowed it to offer chilled poultry to customers, instead of the hitherto frozen or pre-cooked options (courtesy of a new technology it called “cold chain distribution”) [‘What 130 years of M&S history can teach us about innovation”, (Hannah Jenkinson, 2018), www.about.futurelearn.com].

By the 1960s these two commodities, textiles and food, were firmly ensconced as the staples of Marks and Spencer. M&S were forerunners in introducing retail practices that enhanced customer satisfaction, such as the “money-back, no questions asked, no time limit” policy.

Marble Arch – M&S flagship store ⬆

In 1930 Marks and Spencer established itself in the United Kingdom’s financial capital, opening a mega-sized London store at 458 Oxford Street, W1. The Marble Arch store which was to become the company’s flagship store, would go on to compete with those other leading retailers of quality merchandise already with abase in Oxford Street, Selfridge’s and John Lewis’. Marble Arch wasn’t in fact M&S’s first retail outlet in London, that honour went to the one in nearby Edgware Road (which is actually closer to the Marble Arch monument than the Marble Arch M&S!). The Edgware Road store began as a penny bazaar in 1912 with additional floors added in the 1920s. During World War II the building was damaged by German incendiary bombs (as was Marble Arch tube station in an earlier Nazi air raid). In 1959 the original store at Nº228 Edgware Road was closed and replaced by a new, much bigger store at 258-264 Edgware which opened just six days later [‘The History of Marks & Spencer Edgware Road’, (Jan. 2017), www.marble-arch.london].

Nº228 Edgware (Source: M&S Co Archive) ⬇

M&S shift of strategy in an increasingly volatile retail market
At the turn of the 21st century Marks and Spencer’s prospects appeared fairly sanguine…in 1998 it became the first British retailer to achieve a pre-tax profit of over £1B.

But in the first decade of this century, M&S, sensing the need to compete for more of the market, made some seismic changes. The standard–bearer St Michael’s brand was dropped, other longtime lines were rebranded. The company moved away from its emphasis on “British quality goods”, starting to sell big-name grocery lines like Marmite, Kellogg’s Corn Flakes and KitKats in its stores [‘Marks and Spencer to start selling top brands’, (G Hiscott), The Mirror (UK), 04-Nov-2009, www.mirror.co.uk] (previously it had concentrated on ‘luxury’ food products exclusively). This marks the recognition by Marks and Spencer that the falling trend of clothing sales needed to be heavily supplemented by popular food items.

Marks and Spencer (colloquially and affectionately known on the street as “Marks and Sparks”) as at April 2017 could list a total of 959 operating stores across the UK✣, 615 of which traded in food only (the “Simply Food” label), evidence of how food products had come to prop up the other traditional areas of the business. Future prospects for the major British retailer remain somewhat nebulous after the company signalled in 2018 its intent to close around 100 M&S stores in the country by 2022. Retail finance watchers have also questioned, with such a reliance on food items, whether M&S can ultimately match it with the UK’s food and groceries powerhouse Tesco [‘M&S online food delivery service will be no piece of cake’, Robert Plummer, BBC News, 28-Apr-2017, www.bbc.com]. Still, Marks and Spencer remains in majority British hands (unlike its rival heavyweights Harrods and Selfridges).


⬆ Commemorative M&S clock in Leeds market

━━━──━━━━──━━━━──━━━━──━━━━──━━━━──━━━
✱ the foundation date for the company is traditionally given as 1884, however the exact date the partnership began between Marks and Spencer seems conjectural – other candidates are from 1894 (the Leeds permanent stall) or from 1901 (the Birkenhead market)
⊡ product inexpensiveness was not to stay the M&S catch cry – by the late 1920s Simon Marks (the founder’s son who had assumed the reins) placed a 5/- limit on items. Long before this M&S had made the store focus one of quality over cheapness
✣ plus over 200 overseas stores in at least 40 countries

John Lewis, Senior and Junior: A Contrast in Pathways Up the Retailing Ladder

Posted on by E Curb Nottus
Biographical, Commerce & Business, Local history, Retailing history

The path taken by John Lewis in scaling the heights of retail commerce was typical of many embryonic and aspiring owner-drapers in mid-Victorian Britain. Somerset born and raised, Lewis started his first modest shop in Nº132 (later re-numbered) Oxford Street, London, in 1864 (taking the sum of 16s & 4d on opening day). His first twenty years in business for himself were far from glamorous, a period dominated by hard and dreary ‘yakka’ and slow piecemeal accumulation and consolidation.

The tortoise approach – slow and steady
Lewis took a conservative, uncomplicated (“keep it simple”) approach to retailing and only slowly moved his lines from silks, woollens and cotton fabrics to dress fabrics and clothing and later to furnishing fabrics and household supplies like China and ironmongery (but never food!). His philosophy was sell cheap and no ads (for nearly a century the John Lewis company continued a practice of minimal advertising!)✱. Unsurprisingly for a man described as “a Victorian curmudgeon” [‘John Lewis (1836-1928)’, Geoffrey Tweedale, Oxford Dictionary of National Biography, 06-Jan-2011, www.oxfordnb.com], his management style was rigidly autocratic, he often had abysmally poor relations with his staff and was prone to effecting arbitrary and sometimes wholesale dismissals. In 1920 Lewis’ “pig-headedness” and anti-union stance triggered deleterious industrial conflict…in 1920 the unaddressed grievances of Lewis’ shop-girls led to a strike by 400 staff. Lewis simply sacked the strikers and replaced them, but his arbitrary action brought him discredit and caused commercial ruptures adversely affected the company’s competitiveness vis-à-vis its retailing rivals in the long-term. ‘How John Lewis was the original store wars: As the retail empire celebrates 150 years, we tell its fascinating story’, (Brian Viner), The Daily Mail (UK),, 04-Jul-2014, www.dailymail.co.uk]

ef=”http://www.7dayadventurer.com/wp-content/uploads/2018/11/image-1.jpg”> Flagship store 1939 (Source: John Lewis Memory)[/cap
Lewis adopted an habitually “penny-pinching” stance when it came to running the store’s finances. In this he was the diametrically opposite of his Selfridges contemporary, the ostentatious, big spending, big advertising Harry Gordon Selfridge. In the eyes of Lewis, Selfridge must have seemed absolutely criminally profligate! Nonetheless Lewis did earn “brownie points” with London consumers for his straight dealing and commitment to the purveyance of quality goods, and profits grew accordingly. Sales for the ‘John Lewis’ stores rose from an underwhelming £25,000 in 1870 to a commendable £921,000 in 1921.

http://www.7dayadventurer.com/wp-content/uploads/2018/11/image-2.jpg”> Peter Jones[/caption
Another instance of Lewis’s circumspect approach was his reluctance to expand the business. It was not until 1906 that he made a move in this direction, purchasing the ailing Peter Jones store in Chelsea after the death of the store’s original Welsh owner✧. During his long lifetime John Lewis made no further expansionary attempts. The company during this period was clearly hamstrung by a lack of dynamic vision under its founder – losing vital retail ground to the likes of Whiteleys and Owen Owen [Tweedale, loc.cit.].

Father v son
Lewis’s innate caution also showed itself in his hesitancy in passing even a portion of control of the firm over to his sons, especially his eldest son John Spedan Lewis. When Lewis’s sons came of age, he gave them a limited role only…Spedan (as he was universally called) was put in charge of the newly acquired Peter Jones store (presumably to keep him from interfering with the central operation of the business). Spedan increasingly clashed with Lewis Senior over their fundamentally different approaches to business, with Spedan in charge of Peter Jones and JL Senior holding sway in Oxford Street HQs, relations between father and son deteriorated alarmingly (characterised in some quarters as equating to intra-family “store wars”) [Viner, loc.cit].

After the founder’s death in 1928 Spedan was free to fully implement his more progressive management ideas – in the area of staff relations these were often light years away from his father’s outmoded views and intransigent bellicosity…once at the helm Lewis Junior started by cutting working hours and introduced tea-breaks for the staff…Spedan envisaged further, more radical, plans for modernising ‘John Lewis’ and propelling it forward in the Thirties.

Under Spedan’s watch – JLP up and away!
Spedan wasted no time in taking ‘John Lewis’ in a very different direction to his late father’s ultra-cautious, steady-as-it-goes approach. In 1929 he reformed the enterprise into a public limited company, John Lewis Partners (JLP). Staff were rebranded ‘partners’ and made shareholders in the firm. Spedan diversified and pursued an expansionary route that Lewis Senior had so long doggedly eschewed. Smaller, less profitable chains were acquired – from 1933 on Spedan widened the John Lewis Partnership dramatically, adding purchased stores for the first time outside of London – Nottingham, Weston Super-Mare, Portsmouth and Tyrrel, Southampton, etc. [‘The 1930’s; a period of growth’, (Johnathan Blanchford), (‘John Lewis Memory Store’), www.johnlewismemorystore.org.uk]. One of JL Junior’s ideas was to create a chain of John Lewis hotels, and to supply these hotels he bought a chain of grocery shops, known as Waitrose, in the Thirties. Waitrose proved a spectacularly profitable acquisition for John Lewis’⊛. As of 2016 there were some 353 Waitrose supermarkets across the UK, collectively worth more than £1B (one of only five such successful food and drink brands in Britain) [‘Waitrose’, Wikipedia]http://en.m.wikipedia.org.

In the Forties John S Lewis bought up some of the failing Selfridge business concerns after the former high-flying company plummeted and Harry Selfridge was forced out to pasture and into retirement. Other (overseas) business moves into South African draperies however turned out to be unsuccessful ventures [‘John Lewis’, Wikipedia, http://en.m.wikipedia.org].

▼ Spedan Lewis

Although Spedan was less autocratic, and certainly less confrontational✣, than his father, he was no democrat when it came to running the John Lewis business empire. Some observers (including insiders), recognising an inherited family trait, saw Lewis Junior as a “my way or the highway” type of business leader. Recollections of some ex-staff and associates point at a Spedan inclination to public losses of temper and the arbitrary and unfair treatment of staff on occasions, with a suggestion of a peculiar bias against staff (including managers) with ginger hair [‘Memories of Spedan – not all sweetness and light’, (Margaret Cole), (‘John Lewis Memory Store’), www.johnlewismemorystore.org.uk].

Today JLP remains an employee-owned British company (consistent with the “worker-cooperative” entity (the ‘Partnership’) as initiated by Spedan Lewis in 1929). According to the Sunday Times it is the third largest private UK company by sales – £3.78B revenue in 2017 [“The Sunday Times HSBC Top Track 100 league” (2016)]. As a retail operator JLP maintain its traditional market position as a chain of high-end✫ department stores⊡, competing with its historic, equally upscale rivals in the merchandising field, Harrods and Selfridges.

FN: the corporate colours of retailing
John Lewis’s store colours have traditionally been green and white – supposedly because Spedan Lewis wrote his memos exclusively in green ink (the auditor’s colour!) on white paper [Tweedale, loc.cit.]. Interestingly, green seems to be the preferred colour of successful London-based retailers…Selfridges’ salient business colour is also green, and both Harrod’s and Marks and Spencer’s traditional hues are green and gold.

2013: John Lewis presence in Westfield’s Shepherds Bush mall ∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸∸
✱ the John Lewis motto (dating from 1925) characteristically is “never knowingly undersold”
✧ the sale was the stuff of legend in London retailing – Lewis reportedly walked the distance from Oxford Street to the Sloane Square, Chelsea, Jones premises, with bank notes in his pocket to the value of £20,000 to complete the purchase in person. Today, Peter Jones is the ‘posher’ sibling of the John Lewis store
⊛ Waitrose is an upmarket grocer in line with the general emphasis of John Lewis merchandising
✣ JL Senior’s quarrelsome, confrontational nature was often fraught with consequences – a protracted turn-of-the-century legal dispute with Lord Howard, Baron de Walden, saw Lewis being sentenced to three weeks in gaol in 1903 for contempt of court [‘How John Lewis ended up in prison. A new century same old Mr Lewis’, (J Blanchford), (‘John Lewis Memory Store’), www.johnlewismemorystore.org.uk]
✫ a monumental departure from the early days of JL Senior’s “sell cheap” strategy
⊡ currently around 30 JL stores in England, Scotland and Wales and concessions in the Republic of Ireland and Australia