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Suppliers refuse M&S demands

Suppliers asked by retailer Marks & Spencer for a contribution to help fund its £600m store refurbishment programme are understood to have refused to pay.

According to reports in the Sunday papers, at least one supplier has said that it will not pay the 1.25% fee requested by the retailer and more suppliers are expected to follow suit.

Drapers first reported in October that M&S had held a meeting with its suppliers, where it asked for a one-off contribution of 1.25% of their M&S revenues in the year to August.

One concerned supplier said she would not be able to afford the extra cost and that the fee could equate to as much as £500,000 for some suppliers.

The M&S store refurbishment programme is part of M&S chief executive Marc Bolland’s change programme, intended to differentiate the retailer’s sub-brands and make stores easier to shop.

The first refurbed store was unveiled on London’s High Street Kensington in September.

See this week’s Drapers (Friday November 25) for more on this story.

Readers' comments (2)

  • Quite agree - all M&S suppliers should refuse to pay this discount. It's nothing more than corporate mugging. Bolland needs to understand in difficult trading conditions they need the cooperation of their suppliers and not to push them out of business. Perhaps he should stick to running super markets.

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  • Brilliant news! M&S should pay for their own costs and hopefully other retailers will now not take their suppliers for granted.

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