Reuters reports that embattled retailer Marks & Spencer plans to cut costs by more than the equivalent of $180 million (US) a year for the next three years, hoping that the move will help it remain independent and fight off unwanted acquisition bids from outside companies. Marks & Spencer already has rejected a pair of bids by retailing entrepreneur Philip Green over the past few weeks, saying that they undervalued the company.
The move is part of a broader cost-savings plan scheduled to be unveiled by CEO Stuart Rose on July 12.
While Green has not yet said if he plans to raise his bid or walk away, the cost-cutting by Rose is said to mirror the kinds of moves that Green likely would make if he owned the company…so, in essence, Rose is trying to assuage investors that they can have the same efficiencies without a change in ownership.
The move is part of a broader cost-savings plan scheduled to be unveiled by CEO Stuart Rose on July 12.
While Green has not yet said if he plans to raise his bid or walk away, the cost-cutting by Rose is said to mirror the kinds of moves that Green likely would make if he owned the company…so, in essence, Rose is trying to assuage investors that they can have the same efficiencies without a change in ownership.
- KC's View:
- Call us crazy, but we’re more interested in seeing what the company plans to do to create a more compelling shopping experience for consumers. Cost-cutting and price reductions are fine…but they don’t get at the core experience.
