Thousands of jobs at risk as M&S stores to close
MARKS & SPENCER is to close more than 100 stores by 2022 as it accelerates a transformation programme that will see thousands of jobs put at risk.
The closures will affect its clothing and home stores, which have underperformed for several years.
M&S named 14 stores earmarked for closure yesterday, including in London’s Bayswater and Holloway Road, with a total of 872 employees affected.
The move is part of a five-year turnaround plan spearheaded by chairman Archie Norman and chief executive Steve Rowe.
Mr Rowe has already closed 20 stores so far this year, affecting about 900 jobs, including a clothing store at the Parc Fforestfach out-of-town retail park in Swansea, which closed in March. A smaller M&S food store, which is just 200 yards away from the old site, has remained open, as will its established outlet in the centre of Swansea.
Mr Norman and Mr Rowe have been seeking to save costs through store closures and shutting distribution centres as part of a wide-ranging efficiency drive as the company’s financial performance deteriorates.
Sacha Berendji, retail and property director at M&S, said: “We are making good progress with our plans to reshape our store estate to be more relevant to our customers and support our online growth plans.
“Closing stores isn’t easy but it is vital for the future of M&S. Where we have closed stores, we are seeing an encouraging number of customers moving to nearby stores and enjoying shopping with us in a better environment, which is why we’re continuing to transform our estate with pace.”
Bayswater, Fleetwood Outlet in Lancashire and Newton Abbot Outlet in Devon will close by the end of July 2018. Clacton in Essex and Holloway Road will both close by early 2019.
Darlington, East Kilbride, Falkirk, Kettering, Newmarket, New Mersey Speke, Northampton, Stockton and Walsall are proposed for closure and will now enter a period of consultation with affected employees.
The announcement comes as the retailer is expected to unveil another troubling set of annual figures today.
Today’s results are set to show that underlying pre-tax profit across the group fell 6% to £573m.
M&S has previously described its food line as experiencing “ongoing underperformance”, with Mr Rowe pledging to slow down growth of its Simply Food chain in the interim.
It comes amid Sainsbury’s Asda takeover, Tesco’s £4bn buyout of Booker and the rise in budget supermarkets Aldi and Lidl.
Marks & Spencer has been in crisis talks since 2016 over declining customer numbers.
Consumer expert Martin Lane, at Money.co.uk, said: Staff at Marks & Spencer have been kept in limbo wondering whether or not their jobs are safe, which is incredibly distressing for employees and their families.
“Now is the time to check what redundancy rights you have and dig out any income or mortgage protection policies you hold just in case.
“Retail giants are facing turbulent times, with competitive pressure from discount rivals and online sales.
“With M&S experiencing falling profits, it isn’t surprising they’ve had to take this approach.
“Their signature luxury products are being undercut by bargain supermarkets at a fraction of the price.
“Shoppers expect quality and convenience for less than ever before and unfortunately M&S are struggling to compete.
“Sadly, this follows a raft of redundancies on the high street this year and I doubt it will end anytime soon.
“Shoppers’ habits are changing, purse strings are tightening and our reluctance to pay full price becomes more problematic for highstreet stores.”
Where we have closed stores, we are seeing an encouraging number of customers moving to nearby stores and enjoying shopping with us in a better environment SACHA BERENDJI