The Hindu Business Line : Marks & Spencer gets ready for sourcing base in Bangalore

MARKS & Spencer, the UK-based retailer with over 540 stores in 30 countries, is setting up a sourcing centre in India for direct and increased operations from the country.

The sourcing office, scheduled to begin operations in August this year, will be based out of Bangalore and will mainly deal in apparel, sources said.

The clothing retailer, which also deals in food, homeware and financial services, is unveiling direct sourcing operations here at a time when rivals like Wal-Mart, JC Penny and top fashion apparel brands have announced plans to step up similar operations from India.

The end of quota system as part of WTO and the rush to source from the country is expected to create shortage for fine quality export clothing in 2005.

It is learnt that Marks & Spencer has identified Mr Venu Nair, former Regional Director of Madura Garments in the UK and Europe, to spearhead its sourcing operations in the country.

Mr Nair has already quit Madura Garments to join Marks & Spencer, the sources added.

When contacted, Mr Nair, who is currently in UK, confirmed the move but added that it was too early to comment further.

Incidentally, the latest development comes at a time when the retailer, which is in the midst of a turnaround act, has also decided to shift part of its contact centre operations to India and locate it probably in Mumbai.

Marks & Spencer has seen its market share in the mainstay clothing business slip in recent years, losing customers to rivals such as Next Plc.

Last month, the chain, with sales topping £8 billion, announced that it was planning to cut 1,000 jobs at its front and back end offices in London.

In recent weeks, it also announced some top-level management changes as clothing sales dipped more than expected in the fourth quarter last year.

Marks & Spencer had earlier forayed into the retailing market in India through the franchisee route with a store in Mumbai but did not meet with much success.

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Marks & Spencer gets ready for sourcing base in Bangalore