M&S is set to slash prices in its overseas stores in a bid to boost its international business.
CEO Stuart Machin said he was looking to “restore the competitiveness” of its stores outside the UK after finding they were “way out of kilter on price”.
He noted that one of the retailer’s Singapore stores was around a third more expensive than its rivals.
Machin explained that its international prices were higher because both M&S and its franchise partners were making a margin on the sale.
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Speaking at an investor day earlier this month, he said: “The truth is, there is no win-win partnership with our franchise partners…We need to re-contract with those partners and reset the expectations.”
Machin noted that its franchise agreements put more of the risk on partners so were only buying in the same basic everyday ranges each year, choosing products that would definitely sell because they “don’t want to take a risk so they buy safe”.
He added: “That is why when you go to many of our stores internationally, you’ll see the same everyday range, year in, year out…We have to completely rethink international.”
It is thought that possible changes include trialling new products overseas and speeding up how the retailer gets stock into those markets.
The retailer has 434 international stores and 264 of those are run by franchise partners in locations across Asia, the Middle East and Europe.
M&S promoted its clothing and home supply chain and logistics director Mark Lemming earlier this year to managing director of international.
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