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Marks & Spencer asks suppliers for contribution to store overhaul programme

Marks & Spencer is seeking a contribution from suppliers towards the cost of its £600m store revamp programme.

The retailer held a meeting last Friday with 60 suppliers, including clothing, and asked for a one-off contribution of 1.25% of their revenues with Marks & Spencer in the year to August, the Financial Times reported.

Cash will also be used to fund M&S’s marketing, it is understood.

The request came as Marks & Spencer chief executive Marc Bolland drives forward his change programme, designed to differentiate its brands and sell them better through more easily shoppable stores.

Marks & Spencer has made similar requests to suppliers in the past. Not long after Bolland’s predecessor Sir Stuart Rose returned to the business as chief executive the retailer asked for help to fund its new marketing campaign.

Are you a M&S supplier? Let us know what you think by calling the newsdesk on 020 7728 3540.

Readers' comments (4)

  • I hope some suppliers won't have cave in to more corporate mismanagement from M&S. They've pulled this stunt before and will do it again and again, getting ever increasing discounts on the false premise of 'marketing costs'. Suppliers should remind M&S of one very important thing - you work on our terms, not yours.

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  • Joke, but everyone will cave in. Put your prices up everyone.......

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  • What happens if the suppliers dont agree that the changes will bring about increased long term revenue? Will suppliers have to contribute to something that will bring a reduction in business? The fact is, when Mrs M+S goes into store for a pair of pants she wants to go to the pants section and buy pants, not have pre meeting with her image consultant and stylist as to which sub brand ethos most fits his personality, in order to know which particular section of the store to target. This move will not bring about positive business gains, in fact probably the opposite, and certainly wont payback the investment. Although, one saving grace is that the current ranges are simply awful and i would be willing to bet that ladieswear is having a torrid time, therefore the LFL next year should look good and the management will put this down to the new shopfit!

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  • Again M&S have laid into the supplier to help maintain their margins. Any supplier not meeting their request may find their their name on the list of SUPPLIER DIDNOT HELP WITH OUR BONUS. So really what choice do they have but to pay up.
    M&S will probaly fall well short of their op plans this year like most retailers on the high st. As the grey pound they rely on are not coming through the doors like they use to.

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