Daily Mirror (Northern Ireland)
GRAHAM HISCOTT Must achieve better Marks Norman in M&S revamp call
MARKS & Spencer’s chairman said it has no “God-given right to exist” as he signalled more store closures.
City bigwig Archie Norman warned that without radical action “there could be no M&S” in future.
“We need to make this company fit for the future,” the tough-talking former Tory MP told shareholders at its annual general meeting yesterday.
Norman, who took over last September, admitted the chain had lost trade to competitors such as Primark, online giant ASOS and discount firm B&M.
And he added: “We are running up a down escalator, we have a lot of work to do.”
Norman, who used to run Asda, criticised the firm’s website, “decrepid infrastructure” and older stores. He called it “probably the biggest turnaround in UK retail”.
In May, M&S upped its target for store closures by 2022 from 60 to at least 100 branches.
Norman said of the 100 figure: “I can’t tell you it will end there.
“We have older stores in locations where people are not shopping any more and nd we are paying the price ce for that.” And he said of the closures: “We have ve to go through the pain n barrier.”
Steve e Rowe, M&S chief executive, xecutive, also said of the store cutbacks: ks: “This is a tough decision but we have to make them if the business is to survive.” vive.”
He said 86% of staff taff in stores that closed had moved oved to other branches.
But he told the meeting in London: “In some places laces it is just not viable and there e are likely to be some more redundancies, ndancies, we are clear about that.” ”
Profits at M&S crashed ashed 62% to £66.8million during g the year to this March.
Howe v er, the chain has revamped its top management, overhauled its IT systems ystems and refreshed its fashion ranges.
Bosses are also so taking inspiration fr om England’s World Cup footie heros, eros, who it kitted out in suits ahead head of the tournament in Russia.
And waistcoat-loving oving manager Gareth Southuthgate has helped double ble sales of the garment. .
of borrowers could be hit with another r rate rise next month after a slight light pick-up in the economy. Experts reckon the Bank of England will hike its base rate from 0.5% to 0.75% at its meeting eeting on August 2.
It would add extra expense for some mortgage borrowers and businesses inesses but be a welcome relief for lots of savers. ers.
It comes as figures from the e Office for National Statistics showed the economy my grew by 0.2% in the three months to May.
It expanded by 0.3% in May y alone, boosted by a double dose of the warm weather ther and royal wedding.