Marks & Spencer will cut its £144m marketing budget by 20% next year in response to a continuing fall in profits. The company-wide cost cutting measures is also likely to lead to job cuts.
The retailer revealed its marketing plans yesterday (November 4) during a financial results briefing. It reported a 34% fall in pre-tax profits to £297.8m for the three months to September 27. It suffered a decline in sales across its food and clothing businesses.
There is also a question mark over whether it will continue to use high-profile models, such as Twiggy and Erin O’Connor, in its advertising.
Within its wider business M&S has admitted that it is considering axing a number of jobs in its store design and development and property departments. It is part of the retailer’s decision to scale back growth plans in the wake of the economic downturn.
In other activity, M&S last month announced that it would launch a new clothing range, called Portfolio. It is being aimed at women aged over 45 and will be available in stores from February.
It will be the first new womenswear brand launched by the retailer in four and a half years.