Struggling British retailer Marks and Spencer Plc is considering a shake-up of its food activities, one of the more stable areas of its business, in a bid to further reduce costs and increase profits, the Independent reported on Wednesday. The retail giant, which delivered a third consecutive slide in annual profits last week, would put more of its food contracts out for competitive tender to lower costs under the possible restructure, the newspaper said. Any changes would coincide with the appointment of former Asda (WMT) executive Justin King, who joined two months ago to head M&S Foods, but the company declined to comment on its plans. M&S last week reported a seven per cent drop in annual profits to 480.9 million pounds ($681.6 million). Chairman and chief executive Luc Vandevelde has a year left of a self-imposed two year deadline to turn the business around. The group announced in March it was closing its European operations and said last week it is to move out of its Baker Street head office in central London. Source: Reuters
