He put his decision to become executive chairman of the retailer in June until 2011 – flouting corporate governance guidelines – down to needing “all seasoned hands on deck”.
The decision is a sign of the seriousness with which Rose views the level of the impending slowdown.
It is also the decision of a man who, after being charged with turning the business around, got so tantalisingly close to his goal until, only a year shy of the end of his five-year tenure, was lambasted for lacklustre – but by no means disastrous – Christmas trading.
Defending his position and that of M&S, he said that retailers are facing “an issue of fear” and warned them to disregard share prices that have seen a 43 per cent drop across the retail sector and a 46 per cent slump at M&S.
And confidence has been shaken again by the reverberations following the decision by the Federal Reserve Bank, the European Bank and the Bank of England to inject emergency funds.
Rose said: “I hope it won’t be a recession, but you can see how serious it is with what central banks had to do to keep liquidity going.”
He added that the average consumer on an average salary is facing inflation at “considerably” more than 2 to 2.5 per cent. And, to add further insult to injury, the Government has revealed a Budget that will not go any way to buoy up consumer sentiment. “All the pips are beginning to squeak – there will be pain before relief,” he said.
So, did the M&S knight suggest to retailers some shining armour with which to defend themselves against the gloom of the next two years?
To use Rose’s analogy, after a relatively sunny and calm period, retailers need people on board who know how to take in the sails and batten down the hatches when they hit a squall.
And so, Kate Bostock will face the not-so-small task of geeing up the fashion offer at the retailer. As menswear slumps in the wake of the credit crisis and womenswear reels from the lack of an obvious fashion trend, poor weather and stiff competition, Rose said that M&S will focus on entry price points and its good, better, best product offer.
The strategy may prove a wise one in the immediate term, but, long-term, it is also leading to a blurring of the mid-market and value sectors. It could lead to a loss of identity and consumer confusion and it remains to be seen whether attempting to attract as broad a church as possible through its doors is the right way to ride out the storm.
However, what is clear is that retailers cannot afford to hedge their bets on customer service at a time when customers are feeling at their most jittery; in this area, there is no room for good or better.
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