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Strange question re Marks & Spencer (Australia).

edited September 2009 in Not Sports Related
Here's one for ya...was talking last night with a group of pals who have just come back to London for a few weeks from Oz and the conversation got round to why Marks&Spencers don't have any stores in Australia..it seems very odd..they are in Malaysia........Singapore(I believe) and even have a store or two in Jakarta......but strangely none in Australia.........bit of an obscure question I admit but does anyone know why?
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    Lack of class in Australia? It might be the cost of shipping food that far as I know M&S generally use British produce in its stores, mostly vac packed and shipped out.
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    Cause the Aussies can't spell " M & S " ?
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    Am surprised. I thought they were very big down under !
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    LOL....in other words you guys don't have any more idea than the rest of us..........curious though isn't it?
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    It's mainly because of the large Greek community, where M&S stands for some kind of sexual depravity.

    That's why their sellotape is called Durex.
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    The main reason is that there has traditionally been a very strong duopoly here in the department store sector of Myer and David Jones which dominate the market totally and would make it near impossible for anyone to enter the market.

    In addition, until about 10 years back Australia had very restrictive trading regulations in place which made it nearly impossible for major new entrants to come into the market - these regulations were supported by Myer/David Jones in the department store sector and Coles/Woolworths in the supermarket sector as well as by the Unions.

    It is only over the last five years or so that the lucrative grocery sector has seen any serious new entrants emerge (such as Aldi) but it is still an uphill struggle as the big two control all the best retail sites.

    One final point, M&S is widely known here but is seen as very much a British brand which might make it a tough sell for obvious reasons.
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    Used to be here in Canada when I was a kid, but like Woolworth's, they all shut down...must be 25 years ago now.
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    [cite]Posted By: Ormiston Addick[/cite]
    One final point, M&S is widely known here but is seen as very much a British brand which might make it a tough sell for obvious reasons.

    Obvious?

    Eeeeeeeerrrrrrrrrr?
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    I think there is a M&S in Brisbane my friends went to Oz in summer and i am sure they said there was one
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    [cite]Posted By: jimmymelrose[/cite]
    [cite]Posted By: Ormiston Addick[/cite]
    One final point, M&S is widely known here but is seen as very much a British brand which might make it a tough sell for obvious reasons.

    Obvious?

    Eeeeeeeerrrrrrrrrr?

    I'm not sure that's a factor, Australia seems to enjoy plenty of other British exports. I suspect the reason is that it simply just never happened, that other Department store groups dominated the market and in any case moving into a region where you are not well known is not an automatic guarantor of success. It's easier for a successful brand to keep expanding in areas where it is accepted or has some international clout (eg KFC, McDonalds are global brands), so M&S presumanly preferred to invest in areas where their brand carried some weight and where economies of scale meant that they could trade profitably. Starting from scratch in a region where your brand has little or no loyalty or name recognition makes the entire process much harder and takes longer, the alternative would have been to buy an existing department store group and then re-badge everything, but that doesn't always work.

    Walmart for example is known in the UK but when they bought up Asda a few years ago they preferred to continue trading under that name which is more popular and more widely known/accepted rather than re-badge everything under the Walmart brand. Midland Bank kept their name and logo for a long time after they were taken over by HSBC, and then changed gradually -adopting the HSBC logo before changing the name on the fascias etc.
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    [cite]Posted By: SoundAsa£[/cite]Here's one for ya...was talking last night with a group of pals who have just come back to London for a few weeks from Oz and the conversation got round to why Marks&Spencers don't have any stores in Australia..it seems very odd..they are in Malaysia........Singapore(I believe) and even have a store or two in Jakarta......but strangely none in Australia.........bit of an obscure question I admit but does anyone know why?
    I've often wondered this myself...
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    [cite]Posted By: jimmymelrose[/cite]
    [cite]Posted By: Ormiston Addick[/cite]
    One final point, M&S is widely known here but is seen as very much a British brand which might make it a tough sell for obvious reasons.

    Obvious?

    Eeeeeeeerrrrrrrrrr?

    I should have explained that better. There is still very much a little brother - big brother relationship from many Australians towards the Mother Country and as such there is a genuine antipathy towards all things British.

    Australians would no sooner abandon their own "true blue Aussie" retailers and become M&S devotees than Brits would abandon M&S in favor of a US style newcomer that entered the UK market.

    The Walmart takeover of ASDA is a good example of this by BFR.
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    When I was in South Africa a few years ago I noticed a total lack of M&S stores. Woolworths seemed to be in all of the major cities & although never a regular visitor to Woolies in England, I popped into one store in Joburg and to my surprise it was St Michael everywhere. I can only assume that M&S registered the Woolworths name in SA at the time of apartheid (Allegedly). Perhaps to hide their British shame in Australia something similar has occured.
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    M&S is famous for its knickers, Oz is the place where many years ago you were send to if you were a nicker. So Oz don't need anymore. ;-0)
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    I'd have to disagree that there's huge anti-British feeling in Australia.
    I lived and worked out there for a while - in Sydney, Melbourne and Perth - and found the Aussies to be quite fond of the Brits.
    There was always plenty of banter but I've never bought into the Ashes stereotype of the UK-hating convict..
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    I lived in oz for a number of years and there is no anti english at all, infact the upper classes now embrace there origins and its quite trendy to be of convict decent, target is a big player out there think its wallmart but like a number of things they change the name to make it more ozzy, ala burger king is hungry jacks... once little one is older were seriously thinking of packing up and going there as I have loads of family there on the irish side of the family. There's a mega mall in sydney and every year they build a nativity scene at crimbo, one year a few muslims complained and the owners freaked and took it down, next morning nearly 500 people outside shouting and demanding it back... it was put back that afternoon.
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    edited September 2009
    Interesting comments and thanks...I still can't help wondering though, that as M&S has been around for a very long time, that they somehow have never got their foot in the door.
    Despite your explainations, I have the feeling that there is a more 'profound' reason why this hasn't happened other than antipathy or lack of interest in M&S as a brand..........let's not forget they are/were predomintely a Jewish set up......maybe, way back, that was baulked at at some high level in the OZ government and they weren't made to feel welcome..........who knows?
    The food thing(as mentioned by one or two others), really isn't an issue, as M&S were clothiers many decades before their food products came on the scene.
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    "target is a big player out there think its wallmart but like a number of things they change the name to make it more ozzy, ala burger king is hungry jacks"

    The reason Burger King re-badged here as Hungry Jacks was that the name was already copyrighted in Australia before they set up here. I think that the original Aus copyright is now expired but the parent company has chosen to continue with the Hungry Jacks brand.

    Although there was a white Australia policy I dont think there is any evidence of anti semitism esp at a Government level. Many Jews settled here after the War. The fact that it is a small market - population is only 20 million spread over a vast area would probably have a bigger influence over investment decisions from England.
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    [cite]Posted By: ByronAddick[/cite]"target is a big player out there think its wallmart but like a number of things they change the name to make it more ozzy, ala burger king is hungry jacks"

    The reason Burger King re-badged here as Hungry Jacks was that the name was already copyrighted in Australia before they set up here. I think that the original Aus copyright is now expired but the parent company has chosen to continue with the Hungry Jacks brand.

    Although there was a white Australia policy I dont think there is any evidence of anti semitism esp at a Government level. Many Jews settled here after the War. The fact that it is a small market - population is only 20 million spread over a vast area would probably have a bigger influence over investment decisions from England.

    Yes Byron, re the anti semitism angle, it was only a thought on my part.
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    [cite]Posted By: Valley11[/cite]I'd have to disagree that there's huge anti-British feeling in Australia.
    I lived and worked out there for a while - in Sydney, Melbourne and Perth - and found the Aussies to be quite fond of the Brits.
    There was always plenty of banter but I've never bought into the Ashes stereotype of the UK-hating convict..

    I did not say that there was an anti- British feeling generally, because there probably is not I have only had one row in 12 years and that was with a Kiwi.

    But the Aussies do have som very strange attitudes towards British produce namely that all British food is deep fried rubbish or roast dinners and that we drink nothing but warm beer.

    Things have probably changed a little bit in the last couple of years because of the huge fame here of Jamie Oliver and Gordon Ramsay but before that the Aussies certainly viewed UK food as a bit of a joke.
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    [quote][cite]Posted By: Miserableold-ish git[/cite]Cause the Aussies can't spell " M & S " ?[/quote]

    I've lived over here for 16 odd years and although all the points above seem valied, I cant go past the quote above!!! Classic!! lol!
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    But the Aussies do have som very strange attitudes towards British produce namely that all British food is deep fried rubbish or roast dinners and that we drink nothing but warm beer.

    In fairness, we tend to think all the Aussies do is BBQ prawns and drink ice cold piss water masquerading as beer.
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    [cite]Posted By: Algarveaddick[/cite]
    But the Aussies do have som very strange attitudes towards British produce namely that all British food is deep fried rubbish or roast dinners and that we drink nothing but warm beer.

    In fairness, we tend to think all the Aussies do is BBQ prawns and drink ice cold piss water masquerading as beer.

    I don't have a problem with the BBQ prawns - although most of our prawns are imported believe it or not - but the beer here is truly awful with two or three honorable exceptions.

    Trying to explain to Aussies that beer does not have to be served at glacial temperatures is like trying to explain quantum physics to George W Bush.
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    [cite]Posted By: Ormiston Addick[/cite]
    [cite]Posted By: Algarveaddick[/cite]
    But the Aussies do have som very strange attitudes towards British produce namely that all British food is deep fried rubbish or roast dinners and that we drink nothing but warm beer.

    In fairness, we tend to think all the Aussies do is BBQ prawns and drink ice cold piss water masquerading as beer.

    I don't have a problem with the BBQ prawns - although most of our prawns are imported believe it or not - but the beer here is truly awful with two or three honorable exceptions.

    Trying to explain to Aussies that beer does not have to be served at glacial temperatures is like trying to explain quantum physics to George W Bush.

    Same as all beer served that cold Ormy, there's only one reason for it, if you could actually taste it you couldn't keep it down...
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    [cite]Posted By: Algarveaddick[/cite]
    [cite]Posted By: Ormiston Addick[/cite]
    [cite]Posted By: Algarveaddick[/cite]
    But the Aussies do have som very strange attitudes towards British produce namely that all British food is deep fried rubbish or roast dinners and that we drink nothing but warm beer.

    In fairness, we tend to think all the Aussies do is BBQ prawns and drink ice cold piss water masquerading as beer.

    I don't have a problem with the BBQ prawns - although most of our prawns are imported believe it or not - but the beer here is truly awful with two or three honorable exceptions.

    Trying to explain to Aussies that beer does not have to be served at glacial temperatures is like trying to explain quantum physics to George W Bush.

    Same as all beer served that cold Ormy, there's only one reason for it, if you could actually taste it you couldn't keep it down...


    My experience in living in Sydney was quite different regarding the beer, the apparently aussie beer we drink over here was very much not in evidence. What I saw was mostly bottled, but a good range and high quality, and yes cold - due to the climate, I believe the US is similar too and they don't all drink Bud like you might expect
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    Agreed Raz, certainly plenty of microbreweries in California when we were there a few years back.
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    Agree with Razil, the "aussie" beer in the uk is crap, there are alot of boutique breweries in Oz turning out quality lagers, pils, stouts and bitters. Not all are served ice cold, but it being hot over here most of the year, a "coldie" at the end of the day is just lovely!
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    Most of M&S's foreign stores are franchised. A company called Just Jeans looked seriously at taking a francise for M&S in Australia back in 1998 and even got as far as getting my company to freight the appropriate shop-fitting fixtures & equipment, only to pull the plug with the kit still bobbing around somewhere in the Pacific! They did make a stand in the USA for a while with their acquisition of Brooks Brothers, but ended up flogging it after three years. They have kept stores throughout the Pacific Rim where the brand is fairly strong and people have got a few quid but they closed most of the European stores (Spain, France, Germany and Belgium) due to heavy competition and because they couldn't establish the brand.

    As for Aussie beer.....sitting by Sydney Habour any beer would taste good.....but judged as purely beer, I wouldn't give it too much credit!
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    in the rocks near Sydney Harbour was the only place I managed to find ale (fizzy and cold tho) served in a pint glass, they don't serve beer flat and room temperature over there, its mostly not pisswater lager tho
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    Tooheys Old mate, excellent drop of beer and Boags......
    The Aussies have had a strange opinion on what we eat, mostly unfounded I have to say, but the legend exists. I still recall my first visit to Australia.....I couldnt believe how many shops there were around all the suburbs of Melbourne....I couldnt see how they all managed to co exist. However, as stated the supermarket arena is dominated by Coles and Woolies, and I think its going to be difficult for any company to infiltrate the market place...there are a few Aldi's but they tend to be in down market heavily populated areas around Sydney. When we came back here to live, I couldnt believe how cheap the supermarket shop was compared to Oz. Cars too are proportionately more expensive...even home built cars (Holden and Ford).....£7000 for example is still demanded for a 10-12 year old shagged out Toyota Hiace....I bought a cheap Ute on our last visit, For Oz anyway....a 2001 Triton (Warrior here without the leather) When I came back and did the comparison, I was shocked to see that for the same money I paid in Oz, I could have got a 2005 model here....Having said all that, Id move back permanently tomorrow.
    :-)
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