M&S profits halve - will it recover?

Although M&S has been hit by many additional costs, some unanticipated and others reflecting increased investment in the brand and product, their brand equity has been steadily rising over the last few years. Benefiting from still very strong brand positioning in British culture, it has also enhanced its fashion offering considerably and introduced more brands into its marketplace model. Yet, it is not only this strengthened product proposition and brand equity, but the mental positioning of the brand that will help them win. M&S is a childhood staple for many bringing associations of family, warmth and comfort. This intimate steadiness is exactly what people psychologically need in times of crisis and uncertainty. Since the political and financial situation is turbulent and likely to become even more frightening after budget announcement, people will subconsciously, automatically navigate to shopping where they can experience some level of safety and control and M&S gives them that.