M&S seeks support from suppliers for revamps

MARKS & Spencer has asked major suppliers to chip in to its store revamp programme as the tough retail backdrop forces the high street giant to keep a lid on costs.

The chain yesterday confirmed that it had brought together its top clothing suppliers last week to request the one-off payment, which would also help contribute towards associated advertising costs.

“We did invite them into a meeting and ask for a one-off contribution of 1.25 per cent based on their annual turnover with us,” a spokeswoman for M&S said.

She declined to say how much money that would raise for the retailer, which plans to spend some £600 million over the next three years on a new store format as it seeks to encourage shoppers to spend in an increasingly tough trading environment.

Reports have put the figure in the low tens of millions of pounds range.

The spokeswoman added: “This is an exciting time for M&S and its suppliers; we’ve set out a very clear strategy to grow our business over the next three years to our mutual benefit.

“We therefore believe it is right that our top suppliers are part of the journey from the start.”

Arden Partners analyst Nick Bubb said news of the supplier contributions showed “M&S is a bit defensive about the accusation that it is spending too much on store revamps, and that it needs some help in preserving gross margins at present, with non-food sales under pressure.”