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M&s Asks Suppliers For Price Cuts

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Marks & Spencer has written to all of its suppliers asking for cuts of up to 10% on the price it pays for goods.

Part of the savings, which could be as much as £40m, will be used to fund its advertising campaigns, the group said.

The cuts will come into force from 1 April and M&S said it took the step after reviewing its terms of business.

A spokeswoman said suppliers had been asked to cut their prices as they were now reaping the benefit from rising sales and supply chain improvements.

"The main reason is suppliers are benefiting from our control of the supply chain, they're not holding stock for as long as they did two to three years ago," she said.

"Additionally they are benefiting from increased revenues and better cash flows."

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Guest Bart of Darkness
Marks & Spencer has written to all of its suppliers asking for cuts of up to 10% on the price it pays for goods.

Maybe I should try this with my suppliers. 10% off paper, toner, electricity, gas, telephone, broadband. The sky's the limit.

Or do you think they would tell me to feck off?

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More proof that the only reason 'inflation is low' is because companies are cutting profits to survive. All that does is build up inflationary pressures that will be much harder to stop in the future and require rates to go far higher than they would have done if they'd been raised a couple of years ago.

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Marks & Spencer has written to all of its suppliers asking for cuts of up to 10% on the price it pays for goods.

Part of the savings, which could be as much as £40m, will be used to fund its advertising campaigns, the group said.

The cuts will come into force from 1 April and M&S said it took the step after reviewing its terms of business.

A spokeswoman said suppliers had been asked to cut their prices as they were now reaping the benefit from rising sales and supply chain improvements.

"The main reason is suppliers are benefiting from our control of the supply chain, they're not holding stock for as long as they did two to three years ago," she said.

"Additionally they are benefiting from increased revenues and better cash flows."

This has been the M+S way for decades. They take more and more of their suppliers capacity then force price cuts on then.

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Have they thought about asking their leaseholders for rent cuts! :lol:

You can add retail to the long list of sectors that are going to have to deal with the very nasty effect of paying too mucvh for the ability to simply be able to carry out a function. It is geting cheaper all the time to simply order stuff straight from abroad than it is to even bother getting in the car to visit the local retail outlet, parking chargres, petrol, scameras everywhere, paying 10%,20%,30% more for a product that just goes to cover the monstrously priced retail rent/rates? Why bother.

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Maybe I should try this with my suppliers. 10% off paper, toner, electricity, gas, telephone, broadband. The sky's the limit.

Or do you think they would tell me to feck off?

M&S is a big company. They have more leverage than small firms. How big is 'your' company?

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Guest Bart of Darkness

M&S is a big company. They have more leverage than small firms. How big is 'your' company?

Sole trader :(

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I like their mens' t-shirts - you can hold them up to a light and almost see right through them. I did not realise it was possible to make material so thin!?

That's so they weigh less for the long journey from china

:)

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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