M&S plans to reduce prices internationally to enhance competitiveness.
- CEO Stuart Machin highlights price discrepancies impacting sales.
- Franchise agreements under review to shift risk and introduce new products.
- Targeted regions include Asia, the Middle East, and Europe.
- Changes aim to address uniformity in product offerings across stores.
Marks & Spencer, commonly known as M&S, intends to make significant adjustments in its pricing strategy to fortify its international operations. This move comes as CEO Stuart Machin seeks to restore the competitive edge of its overseas stores, which have been found to be overpricing compared to competitors. Particular mention was made of Singapore, where M&S prices exceed those of rivals by about a third.
Machin, speaking at a recent investor day, elucidated the necessity of renegotiating contracts with franchise partners. He expressed concerns over current agreements that disproportionately place financial risks on partners, leading them to purchase only basic, risk-free products. This cautious approach has resulted in a lack of variety in M&S’s international offerings, where customers often encounter the same stock each year.
The objective is to entirely rethink M&S’s international approach, potentially involving testing new products and accelerating the introduction of stock in foreign markets. This effort will focus on the retailer’s expansive network of 434 international stores, 264 of which rely on franchise partnerships across regions such as Asia, the Middle East, and Europe.
In support of these strategic changes, M&S has promoted Mark Lemming, previously the director of clothing and home supply chain and logistics, to the role of managing director of international. His new position is expected to spearhead these international transitions, ensuring a smoother and more diversified product flow to global markets.
The restructuring aims to enhance M&S’s global appeal and operational efficiency.
