Aerosoles is beginning to sell its own collection under its own name in the UK following the termination of a 7-year exclusive distribution agreement in the country through Marks & Spencer, where its line was being sold under its private Footglove label, but M&S will continue to be a client. The first Aerosoles stores in the UK are planned for next year. The Portuguese company has a 50 percent stake in a new British wholesale operation. One of the partners is its new managing director, Ray Walters, who has been with M&S for 20 years. M&S has been revising its purchasing and sourcing structure. It has set up new sourcing offices in India and Turkey, and it has renegotiated terms with suppliers with the aim of reducing the cost of goods sold by £140 million (€209m-$255m) by 2006/07, as compared to the latest 2003/04 financial year. Preliminary figures for the year ended Apr. 2 show a 19 percent drop in the British retailer’s pre-tax profit before exceptional items from last year’s level of £763.2 million. UK retail sales declined by 1.7 percent to £7,034.7 million (€10.5bn-$12.8bn), while those abroad increased by 1.6 percent to £675.6 million (€840m-$1,230m).