Marks and Spencer tells suppliers to cut costs
UK retailer Marks and Spencer’s has told suppliers to cut their costs as the retailer looks for ways to counter the effects of the slump in the value of sterling, which as made imports from Europe, the Far East and South America more expensive. The UK press has reported that several suppliers have said that M&S is looking to renegotiate the terms of contracts as the fall in sterling and collapse in consumer spending hits profits, which are expected to fall by 40% to GBP560 million (USD833 million) in the year to March. In response to the concerns a spokesperson for M&S said: "There is always a process of ongoing discussions with our suppliers about pricing. We are working hard with them to close the gap that has opened up as a consequence of the decline in value of the pound."
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