Marks & Spencer today said it was renegotiating deals with suppliers in a bid to save at least £100 million a year.

The retailer has held meetings with key merchandise and food suppliers in a move inspired by new chief executive Stuart Rose.

Mr Rose has pledged to reveal his vision for transforming the trading performance of M&S on July 12, which will also include details of "further significant cost savings".

The company has been under pressure since its share of the clothing market declined by 0.2% to 11% last year and like-for-like sales slipped by 0.4%.

Analysts believe the response of investors to the operational review will determine whether retail tycoon Philip Green succeeds in his efforts to take over M&S.

Mr Green is willing to offer more than £8 billion for the high street giant through his bid vehicle Revival Acquisitions, but his approaches have twice been rejected by the M&S board.

M&S works with 15 top suppliers in the UK and a number of smaller firms. It sources around 90% of its products from overseas with the remainder purchased from firms at home.

Thursday July 01, 2004