Marks and Spencer - sub-brands for womenswear.

Marks and Spencer have plans to launch four sub-brands for womenswear, including Signature, Classics, Aimee and Piece-by-Piece. Chief executive Roger Holmes and head of general merchandise Vittorio Radice, believe segmenting the womenswear business is the key to improving sales, making it easier for customers to shop. Sub-brands have been a successful introduction into menswear with SP and Blue Harbour.
Last week M&S announced a new director of womenswear, Kate Bostock from Asda’s George clothing, but it could be October before she joins.
Next Tuesday, Mr Holmes announces what are expected to be disappointing full-year figures, and also the expected over-haul of its supply base and distribution network.

Interest Rates - rising soon

City economists said there was a strong chance that rates would rise to 4.5%, more than the expected 0.25% rise, and that they could be above 5% by the end of the year, as reported in today’s Daily Telegraph. This obviously gives wide concern that higher borrowing rates for businesses would jeopardise growth.

Sainsbury’s - big pay-outs in spite of falling profits

Chairman Sir Peter Davis was paid more than £3m last year, even though the supermarket chain reported a fall in profits by 8.5% to £610m during the year to March 27th 2004. Newly appointed chief executive, Justin King, blamed the shortfall on the need to price cut and therefore lower profit margins in the final quarter.
King said he would stick to the strategy of positioning between value (Tesco and Asda) and quality (Marks and Spencer and Waitrose). Analysts report  that prices are 2% lower this month.

Broadband - pricing wars

For those of you out there who haven’t yet  taken on this technology, good news, prices are coming down. BT and AOL both announced new packages for broadband users.
AOL have a package for £19.99 a month for 256kbps , which includes a free modem and free installation. BT has countered with its own offer of free modem and installation (normally £80), for its entry-level broadband service for £19.99 a month, but offers 512kbps. BT’s offer has a limit on the total amount of data that can be downloaded.

Stephan Schneider  - new shop only here for a month

Last week saw the opening  in Notting Hill, of the first London store for young German fashion designer Stephan Schneider.  Schneider who already has flagship stores in Tokyo and Anterp, and designs for both men and women, explains it’s  ’ a good way to break through the routine and keep freshness‘. The store will close and be completely dismantled on  June 6th.

Susanna Drewry

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