M&S asks suppliers for refurbishment contribution

24 November 2011

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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.

 


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