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Marks and Spencer criticised for refusing to cut hospital shop prices

The retail giant charges more in hospitals for popular items such as flowers than it does on the high street

Michael Bow
City Correspondent
Wednesday 14 October 2015 19:30 BST
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M&S could face a hurdle because cutting prices for hospital franchises and not for any of its other franchises may breach competition law
M&S could face a hurdle because cutting prices for hospital franchises and not for any of its other franchises may breach competition law

Marks & Spencer has come under fire for refusing to cut its prices in hospital shops despite criticism from an MP, who said vulnerable people were being ripped off.

The retail giant, led by its millionaire chief executive Marc Bolland, charges more in hospitals for popular items such as flowers than it does on the high street, a tactic critics say preys on the emotions of people visiting loved ones.

Rival retailer WH Smith faced a similar backlash last month after charging more for items including get-well cards. It subsequently promised to cap some of its prices at hospital shops.

The Labour MP Paula Sherriff, who led the charge against WH Smith, asked M&S to follow suit but the company has refused, saying its hands are tied by competition laws.

“I’m deeply disappointed that Marks & Spencer hasn’t followed the lead shown by WH Smith on hospital pricing. Patients feel like they’re getting their pockets picked to prop up the profits of one of Britain’s biggest brands,” Ms Sherriff said.

“There will be people in desperate circumstances who want nothing more than to look after their loved ones and these shops are making a quick buck on the back of them.”

The MP, a former NHS worker who now sits on the House of Commons Health Select Committee, met Sacha Berendji, director of retail at M&S, and David Leach, the company’s government affairs manager, in Westminster.

She added that M&S has blamed the rents charged by NHS trusts for the higher prices it charges in hospitals.

Ms Sherriff will now try to secure a backbench business debate on ethical behaviour to raise the issue in parliament.

A spokesperson for Marks & Spencer said: “Customers tell us they appreciate our stores in travel locations and hospitals and we work hard to keep prices competitive.

“Prices can be a little higher in these locations due to increased running costs, such as longer opening hours and higher rents.”

M&S hospital shops are operated under a franchise system, whereby a different business will pay M&S to use its brand and products. The franchise will also buy products from M&S at wholesale prices.

M&S could face a hurdle because cutting prices for hospital franchises and not for any of its other franchises may breach competition law.

Ms Sherriff is also involved in a tussle with the chain over the employment of staff at a distribution depot in Swindon. She claims M&S classifies workers at the depot as agency staff, meaning they are paid less and are guaranteed only a small number of hours’ work each week.

M&S said in a statement: “All employees at our Swindon distribution centre are employed either directly or indirectly by DHL.”

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