MARKS AND Spencer is to significantly reduce the prices of all its clothes, homeware and furniture in the Republic from tomorrow but has stopped short of introducing its “permanent price cuts” in its food halls.
The British retailer says it is dropping prices in the affected departments by an average of 12 per cent in response to the economic downturn and continuing consumer concerns about the price discrepancies which exist between M&S outlets in the Republic and in the UK.
Dubbed “We’ve listened, we’ve lowered”, the price-cutting campaign is the latest salvo in a retailer price war which started last month when Tesco Ireland announced a major stock restructuring and price reductions averaging 22 per cent.
While concerns were raised about the impact of the Tesco move on Irish suppliers and on the range of products on its shelves, Marks & Spencer has stressed that its product offerings will not be affected as a result of the price cuts.
It has also pointed out that the reductions will take effect in all 19 of its stores, while Tesco Ireland rolled out its price cuts in just a handful of its Border stores.
Jonathan Smith, the head of Marks & Spencer’s Irish division, said yesterday he expected consumers to be “absolutely delighted” by the move.
A man’s suit which today costs €350 will fall to €309 tomorrow. Women’s skinny jeans will drop in price by €7.50 to €47.50 while more than €225 will be knocked of the price of a €1,500 extendable dining table in its furniture department.
Marks & Spencer is just one of a number of British multiples which has been criticised by Irish consumers for its failure to pass on the savings resulting from a significantly weakened sterling for more than a year but Mr Smith refused to be drawn on why it had taken so long for the store to lower its prices. He would only say it was able to act now as a result of changes to its supply system.
He defended the decision not to introduce the price cuts across the retailer’s entire range and insisted there had been “significant” price reductions in its food halls in recent months, with the focus being on special promotions and the introduction of a Marks & Spencer “Wise Buys” food range in recent weeks.
“Like any other retailer, we do have to take into consideration factors specific only to the Irish market such as higher rental, operational and employment costs when setting prices,” he said. “However, we know things are tough for our Irish customers at the moment and we want to help them.”
Like the other major retailers operating in the State, Marks & Spencer refuses to disclose the profits made by its operation in the Republic. When pressed yesterday, Mr Smith said he felt it was sufficient for them to be bundled with its international arm.
It is a position also adopted by Tesco Ireland.
Last February, its representatives indicated to an Oireachtas committee that its profits in the Republic were in line with margins in the rest of the company, but it subsequently emerged that its Irish profits were at least 50 per cent higher than in other parts of the company.
