M&S To Sell Branded Goods

Marks and Spencer has announced that it is to begin selling branded goods in its stores across the UK for the first time.

The decision means that customers will now be able to choose from 400 household brands, such as Kelloggs, Marmite, Heinz, Coca-Cola, Fairy, Pantene and Persil, which will be sold alongside M&S' own-brand products.

The company said that the move would provide extra choice for their customers, but stressed that their own-brand range would not be reduced as a result of the change.

The company also said that all of the branded products had also been price matched against the major supermarkets.

The move follows a successful 16-month trial in M&S stores in the north east and south east of England and will focus on brand-dominated categories where M&S would typically have a low market share, such as soft drinks, confectionery, beer, laundry, personal care and pet food or on filling gaps where M&S has no own brand equivalent.

Sir Stuart Rose, M&S Chairman, said: "Our trials have shown us that an edited selection of branded grocery and household products has a place at Marks & Spencer.

"Our customers are at the heart of this decision - they lead increasingly busy lives so buying those essential, must-have branded products at M&S will help save them time. It will be so much more convenient for our customers to get what they need from M&S rather than having to go elsewhere," he said.

The announcement comes on the same day that M&S announced half-year pre-tax profits of £306.7 million. Total sales also rose 2.8% in the same period, although UK like-for-like sales dropped by 0.9%.

Sir Stuart Rose said the company was "pleased" with the performance. He said: "Our strong customer offer, together with tight management of costs and margin, has allowed us to report a profit slightly ahead of last year, despite a challenging economic environment.

"We increased our share of the clothing market over the period and our performance in food has also improved.

"We continue to focus on providing better than ever value for our customers, for the all important Christmas period and into 2010. In the longer term, we have clear plans to deliver sustainable growth by driving international and multi-channel, supported by the roll out of new supply chain and systems platforms.

"Our positive cash flow and financial position gives us the capacity to implement our plans.

"We have had a good start to the third quarter. However, the market remains competitive and, as we come up against volatile trading conditions last year, we remain cautious about the outlook for Christmas and the year ahead.

"We are increasingly confident that customers recognise and trust our outstanding quality, value and ethical stance," the top executive continued.

(KMcA/BMcC)