Marks & Spencer extends brands trial

M&S: attracting younger customers and extending brand trial

Premium food retailer Marks & Spencer is reported to be extending its trial of branded products outside of the north east to 20 stores in south east England.

According to the Financial Times, the roll out will begin at the end of this month (April) and will see brands including Tetley tea and Hellman’s mayonnaise sold alongside the Marks & Spencer label.

The newspaper reports Marks & Spencer has handpicked stores in London and Hertfordshire for the experiment, including Cheshunt, home to Tesco’s HQ.

Marks & Spencer has declined to confirm if the brand extension is a precursor to a wider roll out across its retail estate.

Last year, Marks & Spencer broke with 85 years of tradition, when it began stocking 350 branded items in 19 stores in and around Tyneside.

The premium retailer has been struggling to improve performance in food and attract shoppers back into stores.

In the early New Year, Marks & Spencer announced it was closing 25 of its Simply Food convenience stores. The premium food retailer reported same store food sales had fallen 5.2% in the last three months of 2008, compared with the same period in 2007, and the Simply Food stores earmarked for closure had under performed.

However, figures for the first three months of 2009 show Marks & Spencer is beginning to stem the sales decline. In the 13 weeks to 28 March 2009 like-for-like food sales fell by 3.7%.

Stuart Rose, Marks & Spencer’s executive chairman, said M&S has attracted 20% more younger shoppers than previously. Sales have also been lifted by money-off promotions such as a "Dine in for £10” promotion.