Company releases statement justifying supplier letter calling for 5% cost cuts.
Magnet was keen to stress today that it is common practice to request suppliers to reduce cost prices in order to maintain or improve prices to customers.

In the first two quarters of 2008, parent company Nobia UK's organic sales grew 12% and 10% respectively compared to 2007.

The company states that its recent growth has been underpinned by a £28m store refurbishment programme, which saw 126 branches redeveloped in Magnet's new footprint.

44 new branches have been opened in the last 18 months with six to follow before Christmas.

Roy Saunders, chief executive officer, said: "During the current market conditions, consumers are demanding greater value for money from companies that they trust.

"The pressure we placed on our to reduce costs was simply to offer our customers enhanced value for money at a time when personal finances are obviously a concern for UK householders."