M&S to shut 80 stores over next five years
BRITAIN’S Marks & Spencer plans to shut more than 80 stores at home and abroad at a cost of up to £550-million (R9.1-billion) as its new boss tries to revive the retailer by shifting its focus more towards food than fashion.
M&S, whose shares have fallen 22% so far this year, reported a 19% slump in first-half profit yesterday and another decline in quarterly clothing sales.
Steve Rowe, a company veteran who took over as chief executive in April, has the task of reviving the fortunes of the 132-year-old retailer, once a staple of the British shopping street.
Clothing sales have been in inexorable decline in recent years despite the launch of sub-brands such as Per Una and Autograph, and shoppers complained they felt the style, sizing and quality was increasingly missing the mark.
Its market share has been eroded by rivals such as Next and a push from supermarkets into clothing, while younger shoppers favour Primark and H&M’s cheaper prices.
“These are tough decisions, but vital to building a future M&S that is simpler, more relevant, multi-channel and focused on delivering sustainable returns,” Rowe said.
He plans to close about 30 stores selling clothing, homewares and food and convert another 45 into food stores over the next five years.
“This is not about the M&S brand disappearing,” he said.
“In fact, with our Simply Food [opening] programme we will be in more locations in the future than we are in today.” – Reuters