MediaVest faces £6m M&S review

Marks & Spencer Financial Services is understood to be reviewing its &£6m media buying account held by MediaVest Manchester.

M&S is planning to expand it financial services areas within branches as part of a refurbishment programme aimed at invigorating the ailing brand.

The retailer is looking at 100 of its 300 stores, large and small, and assessing how many of these would benefit from a financial services area by analysing the customer base.

The company already has 15 financial services areas within branches across the UK offering pensions, loans, unit trusts, life assurance and private medical insurance.

It is trying to get away from predominantly selling financial services products to its 6 million storecard holders through the Internet and over the telephone.

The stores attract 10 million customers a week and the company hopes its strong high street presence can help break the cycle of people going to a high street bank for financial products.

The financial services division’s pre-tax profits, released this week, have fallen from &£115.9m in 1999/2000 to &£96.3m in 2000/2001. The company’s overall financial results show operating profits have fallen from &£481m in 1999/2000 to &£517.2m in 2000/2001.

M&S denies a full review of its creative and media accounts, held by Rainey Kelly Campbell Roalfe/Y&R and Walker Media, is taking place.