M&S May Cut Fashion Entry Prices

Marks & Spencer is likely to cut its entry point pricing to remain competitive, according to City analysts. After attending last week's A/W womenswear preview, analysts said that although the retailer was probably happy with the price architecture in the mid core of its ranges, it was likely it would have to cut prices at the more basic end of its offer.

One said: 'We've got the feeling that M&S is not providing for the lower end of the market as effectively as it is for the middle. Although M&S is competitive with its rivals in the mid to upper levels of its offer, on basic cheaper product it is still perceived as being expensive and there is room for sharpening of price points.'

The argument is backed by figures from consultancy Retailmap which show that on entry level product across a basket of 100 items surveyed in early S/S, M&S is less competitive on womenswear than its rivals. The retailer was slightly more competitive on menswear.

Analysts are concerned that M&S is still having problems getting more fashionable product into smaller stores. This could be a growing source of frustration for the creative team, which is producing well-received fashion ranges that are not making it into enough stores. That is precisely the impact needed to woo back the 30-45 year-old customer.