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22 November 2011 | Angeline Albert
Marks & Spencer (M&S) is negotiating
with suppliers to convince them to pay 1.25 per cent of their turnover to part-finance
the refurbishment of stores.
The retailer wants 60 of its key suppliers
of general merchandise, which includes clothing, home and gifts, to make a
one-off contribution to pay for a revamp of its stores.
Although the retailer confirmed these
discussions with the suppliers were ongoing, a spokesman for M&S declined
to give further details.
The decision to turn to suppliers for extra
cash reflects tough trading conditions highlighted by recent financial results
and rising commodity prices, which the group promised not to pass on to
customers. Earlier this month, M&S reported profit of £315 million for the
first six months of the year, down from £349 million in 2010.
The trading conditions led chief executive
Marc Bolland to announce plans to give stores a fresh look. In November 2010,
Bolland said he aimed to increase the group’s revenue from £1.5 billion to £2.5
billion by 2013/14.