M&S asks suppliers for discounts to fund ads
Marks & Spencer suppliers were today being asked for discounts of up to 5.5% as the chain meets the bill for a multi-million pound advertising campaign.
Celebrity models Twiggy and Erin O’Connor star in the latest television commercials, which were launched two weeks ago following a similar campaign last year.
All suppliers in home furnishings, clothing and food are to give the retailer a 0.5% discount, or “marketing allowance” on the cost price from next month.
This will help pay towards store remodelling, M&S’s online programme and the latest advertising campaign, a company spokeswoman said.
In addition, direct suppliers – who provide goods straight from factories - have been asked to increase their regular discount from 5% to 10%, although the company did not specify the reasons behind this increase.
Around 90% of the firm’s suppliers are based overseas, mostly in the Far East, Asia and Europe.
The spokeswoman added: “We have reviewed our terms with all our suppliers. We are continuing to invest heavily in marketing and on our store remodels and online programme.
“This benefits the supplier because, as a result, we are getting a quicker turnaround on product with better cashflow and higher revenues.”
