M&S has demanded increased rebates from its supplier base, comprising hundreds of food and general merchandise businesses, and a further rebate dependent on annual sales growth of particular lines.
Some suppliers have reacted angrily to the changes, which come into force on April 1. One said it was a 'tax on growth'.
M&S directors believe the improvements being made at the business - such as the high-profile marketing campaign and store refurbishments - mean changed terms are justifiable.
By the end of this year, for instance, M&S will have introduced its new store format in more than 30 per cent of outlets. The highly-praised Your M&S campaign boosted food sales significantly at Christmas.
Marks & Spencer would not give details of the new round of changes, but it is understood that an extra 1.5 per cent or so will be added to standard rebates, with more being added when product sales growth is 20 per cent or more in a year.
A director of one supplier said: 'The fact is that customers are choosing our product and customers want more of our product, but our reward is that M&S wants extra rebate. Surely that's outrageous?'
M&S's stance was backed by some City observers. Investec analyst Matthew McEachran said: 'There has probably been volume growth and suppliers would have benefited from that. It seems logical that some of the suppliers should give something back. The question is how much M&S gets back - I'm sure some of it will be passed on the consumer.'
Marks & Spencer has already tightened supplier terms twice in the past two years and some analysts have questioned how much more can be squeezed out of the relationship.
But the need to control costs, as well as the intensity of high street competition, means that M&S will examine all options necessary to ensure it sustains its recovery.
M&S posts fourth-quarter figures next month. During the third quarter, the retailer impressed with a 2.9 per cent comparable sales uplift, and has focused on tight stock control and improved buying.
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