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Marks & Spencer drops food prices, reduces promotions
United Kingdom
Wednesday 12 November 2008
Marks & Spencer is cutting the price of about 10% of its food products and targeting promotions more carefully as part of its plan to combat the tough economic climate.
After revealing that profits were down by 34%, M&S chairman Sir Stuart Rose said that improving its performance in food was a key plank in its survival plan.
He said: "The economic environment has changed dramatically and we are now facing the most difficult retail conditions since the early 90s.
"We remain confident in our long-term growth prospects: to drive our brand in the UK and improve the quality of our trading space; to grow M&S Direct; and to develop our international business.
"We must also respond to the current climate and changing needs of our customers. Accordingly, our priorities for the remainder of this year and next place a greater emphasis on managing our business through the current downturn and underpinning our strong financial position to ensure that we come out of it in the best possible shape."
On food, he said: "Market conditions and increased competition through aggressive pricing, along with some key operational issues, impacted on our performance during the half."
A focus on value was top of the list of measures designed to improve food performance.
Said Rose: "In the current market customers are increasingly concerned about value and we know that we have to respond accordingly. During the half, we realigned prices on around 530 products comprising over 10% of our total food catalogue.
After revealing that profits were down by 34%, M&S chairman Sir Stuart Rose said that improving its performance in food was a key plank in its survival plan.
He said: "The economic environment has changed dramatically and we are now facing the most difficult retail conditions since the early 90s.
"We remain confident in our long-term growth prospects: to drive our brand in the UK and improve the quality of our trading space; to grow M&S Direct; and to develop our international business.
"We must also respond to the current climate and changing needs of our customers. Accordingly, our priorities for the remainder of this year and next place a greater emphasis on managing our business through the current downturn and underpinning our strong financial position to ensure that we come out of it in the best possible shape."
On food, he said: "Market conditions and increased competition through aggressive pricing, along with some key operational issues, impacted on our performance during the half."
A focus on value was top of the list of measures designed to improve food performance.
Said Rose: "In the current market customers are increasingly concerned about value and we know that we have to respond accordingly. During the half, we realigned prices on around 530 products comprising over 10% of our total food catalogue.
