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Marks & Spencer asks clothing suppliers to fund store revamps
08 Oct '11
2 min read
Marks & Spencer (M&S) has asked its clothing supplying firms to aid it in a programme for revamping its outlets.
According to the analysts, the M&S move well exemplifies the difficulty that the retailer is facing with regards to sustenance on the high street.
At a meeting with its 60 leading non-food suppliers, Marc Bolland, the new Chief Executive of M&S, asked the suppliers to contribute 1.25 percent of their annual turnover with M&S.
The sum so accumulated would be utilized to fund the retailer's store refurbishment programme and an enhanced level of advertising, which would comprise a high-profile campaign with model Rosie Huntington-Whiteley posing for the brand.
The refurbishment programme is designed to revamp the outlets in a pattern that they may more prominently feature various sub-brands like Autograph and Per Una.
This is not the first instance where M&S has sought financial help from its suppliers, as way back in 2006 also the retailer forwarded letters to its suppliers informing them that it would unilaterally deduct 10 percent from their bills. In 2008 too, M&S deducted 6.5 percent from the invoices of its food suppliers to fund its Project Genesis.
M&S stated that the revamping programme and global expansion would prove mutually beneficial for the suppliers as well as the company as the move is intended to enhance the retailer's sales by no less than £1.5 billion by 2013-14.
The move has transpired almost a year after M&S modified the supplier terms in last October, whereby the payment terms for direct suppliers were raised from 30 to 60 days, and those for the full-service vendors from 21 to 30 days. The full-service vendors perform more extensive supply work for the retailer.
According to the analysts, the M&S move well exemplifies the difficulty that the retailer is facing with regards to sustenance on the high street.
At a meeting with its 60 leading non-food suppliers, Marc Bolland, the new Chief Executive of M&S, asked the suppliers to contribute 1.25 percent of their annual turnover with M&S.
The sum so accumulated would be utilized to fund the retailer's store refurbishment programme and an enhanced level of advertising, which would comprise a high-profile campaign with model Rosie Huntington-Whiteley posing for the brand.
The refurbishment programme is designed to revamp the outlets in a pattern that they may more prominently feature various sub-brands like Autograph and Per Una.
This is not the first instance where M&S has sought financial help from its suppliers, as way back in 2006 also the retailer forwarded letters to its suppliers informing them that it would unilaterally deduct 10 percent from their bills. In 2008 too, M&S deducted 6.5 percent from the invoices of its food suppliers to fund its Project Genesis.
M&S stated that the revamping programme and global expansion would prove mutually beneficial for the suppliers as well as the company as the move is intended to enhance the retailer's sales by no less than £1.5 billion by 2013-14.
The move has transpired almost a year after M&S modified the supplier terms in last October, whereby the payment terms for direct suppliers were raised from 30 to 60 days, and those for the full-service vendors from 21 to 30 days. The full-service vendors perform more extensive supply work for the retailer.
Fibre2fashion News Desk - India
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