M&S to close 100 stores
LONDON: Marks & Spencer Group Plc plans to close more than 100 stores in its home market by 2022, accelerating a drive to reshape its business as it strives to make at least a third of sales online.
The closures represent around a tenth of the clothing and food group’s UK stores, as it grapples with weak consumer spending and intense competition from supermarkets, fashion chains like Zara and H&M as well as online giant Amazon.com.
M&S, one of the best known names in UK retail, first said it would reduce the amount of store space devoted to clothing and homewares in 2016, shortly after company lifer Steve Rowe became chief executive.
Then in November last year, three months after retail veteran Archie Norman joined as chairman, the firm said it would speed-up the programme. The latest announcement represents a further stepup of the plan.
The figure of more than 100 closures includes 21 that have already shut and 14 stores newly identified for closure.
M&S also said 15 fewer company-owned Simply Food stores would open this year.
As of the end of March, it had 1,035 UK stores, made up of 300 clothing, home and food stores, 696 food-only stores and 39 outlets.
Currently, around 18% of M&S’ clothing and home sales are made online. It does not sell groceries online.
“Alongside relocations, conversions, downsizes and the introduction of concessions, these closures will radically reshape M&S’s clothing and home space,” the retailer said.
The latest tranche of closures will affect 626 M&S employees. All staff will be offered redeployment before redundancy is considered.
“Closing stores isn’t easy but it is vital for the future of M&S,” said retail director Sacha Berendji.
M&S reports full-year results today.