M&S to accelerate store closure programme

Restructure: Chief executive says high street giant is a work in progress

High street bellwether Marks & Spencer is to speed up its clothing store closure programme while slowing down the rate of new Simply Food openings.

As it posted a 5.3% fall in half-year profits, the retailer revealed plans to further “reshape” its under-pressure clothing and home arm.

It said it was also launching a “significant” review of costs under the next push of its turnaround plan.

Shares in M&S moved lower in early trading exchanged as investors digested lower underlying pre-tax profits of £219.1 million for the six months to September 30, down from £231.3m a year earlier.

However, like-for-like sales in the improved in its embattled clothing and home arm, down by a better-than-feared 0.1% in its second quarter after a 1.2% tumble in the previous three months.

Food sales were also 0.1% down in the second quarter.

Chief executive Steve Rowe said M&S was a work in progress.

“The business still has many structural issues to tackle as we embark on the next five years of our transformation, in the context of a very challenging retail and consumer environment,” Mr Rowe said.

“Today we are accelerating our plans to build a business with sustainable, profitable growth, making M&S special again.”

M&S said it would reshape the clothing and home chain to focus on the most successful sales locations, while also driving online sales.

It added that it would put the brakes on opening plans for its food-only stores, although it still aims to launch another 80 Simply Food shops over the full year.

The group’s plans to step up its overhaul comes a year after it first announced that it would shut 30 of its larger UK stores, with a further 45 being downsized or converted to food-only, while also axing 53 loss-making international stores.

It has so far completed six of the 30 announced UK closures.

The group also confirmed that it is launching the hunt for a successor to finance chief Helen Weir, who it said is leaving to pursue a “plural career”.

She will remain in the role until a successor is found.

Shares in M&S closed 5.3p up at 333.1p following yesterday’s session.

Picture: PA. M&S is reviewing its store estate as part of a wider turnaround programme.