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M&S realigns prices/cuts back on marketing
Marks & Spencer has reported that it has responded to the economic slowdown by re-aligning its prices. “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,” said Sir Stuart Rose M&S CEO. M&S also reported that it has been working to resolve the availability problems it has suffered recently. The retailer has also confirmed that as, part of the review of its marketing spend, the budget of GBP145 million (USD261.2 million) will be cut by 20%. Marketing Director Steven Sharpe has refused to rule out the possibility of further changes. There is currently speculation that the plans could lead to a cut in the use of celebrity models in the retailer’s ad campaigns.
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