M&S chief Sir Stuart Rose has predicted increased consolidation among suppliers over the coming year.
"We're all looking for ways to be more efficient," said Sir Stuart, as he revealed a dramatic fall in half-year profit this week, "whether through consolidation or cutting out unnecessary processes. If we look 12 months forward there will be consolidation both in textiles and in food that some of us never even thought about."
Finance director Ian Dyson said there was "opportunity to drive further value out of our supply chain". However, Sir Stuart emphasised that while the business would be looking for efficiencies, the hard-line approach dubbed Project Genesis, which demanded price cuts from suppliers, was in the past.
"The difficult negotiations we were having with some of the food supply base took us away from what we are good at - innovating and giving customers fantastic value," he said.
Earlier this year M&S supplier Northern Foods mothballed the Fenland Foods factory, which made the retailer's Italian ready meals, after it refused to accept new trading terms.
"They had the choice of whether they wanted to make something for us, we offered them something, they didn't want to take it, so we went somewhere else," said Sir Stuart.
M&S revealed a 34% drop in pre-tax profits for the first half of the year to £307.8m. Group sales rose 0.8% to £4.2bn, largely driven by international expansion, while its food sales were down 5.3%.
Sir Stuart also revealed marketing spend would be slashed by 20% next year from this year's £145m.
"We're all looking for ways to be more efficient," said Sir Stuart, as he revealed a dramatic fall in half-year profit this week, "whether through consolidation or cutting out unnecessary processes. If we look 12 months forward there will be consolidation both in textiles and in food that some of us never even thought about."
Finance director Ian Dyson said there was "opportunity to drive further value out of our supply chain". However, Sir Stuart emphasised that while the business would be looking for efficiencies, the hard-line approach dubbed Project Genesis, which demanded price cuts from suppliers, was in the past.
"The difficult negotiations we were having with some of the food supply base took us away from what we are good at - innovating and giving customers fantastic value," he said.
Earlier this year M&S supplier Northern Foods mothballed the Fenland Foods factory, which made the retailer's Italian ready meals, after it refused to accept new trading terms.
"They had the choice of whether they wanted to make something for us, we offered them something, they didn't want to take it, so we went somewhere else," said Sir Stuart.
M&S revealed a 34% drop in pre-tax profits for the first half of the year to £307.8m. Group sales rose 0.8% to £4.2bn, largely driven by international expansion, while its food sales were down 5.3%.
Sir Stuart also revealed marketing spend would be slashed by 20% next year from this year's £145m.
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