M&S flagship may face bulldozer

NOTHING is sacred in Marks & Spencer's struggle to regain its former glory - not even its iconic Marble Arch store in the West End of London.

Chief executive Roger Holmes is examining plans to demolish the group's flagship and to replace it with more modern premises.

The Marble Arch branch, just around the corner from the group's Baker Street headquarters, opened in 1930. Its razing would be a potent symbol that M&S has broken with the past.

But insiders say that any such move is some way off. 'It is too early to say what our plans are,' said a spokesman.

M&S is also overhauling its supply chain and will deliver an update to the City with its annual results later this month.

It wants to cut costs by dealing direct with manufacturers for up to 20% of its supply chain, though the remaining 80% will still be carried out by UK middlemen.

The jury is still out on M&S's recent attempt at launching itself into the 21st century with its revolutionary Gateshead Lifestore, the brainchild of flamboyant former Selfridges boss Vittorio Radice.

The avant garde furniture outlet is understood to be failing to meet internal sales targets. The struggling retailer last week ousted Steve Longdon, head of womenswear, replacing him with Asda executive Kate Bostock.

It also announced that it is parting company with Luc Vandevelde and it is now hunting for a new chairman.

Some investors are uneasy that M&S looks set on appointing a grandee rather than a seasoned retailer.

Stuart Rose - the 55-year-old former boss of Arcadia, Argos and Booker - would be a popular choice in the City, though some on the board, including Holmes, would fear for their jobs.

Rose worked for 17 years at M&S and would relish taking a hands-on approach to the job.

But critics claim that his reputation is inflated. Sceptics think Rose simply struck lucky on a string of deals including the sale of Arcadia to Philip Green, which netted him a £25m fortune.