M&S shuts 14 more stores as profits slide

Adjust Comment Print

Alongside relocations, conversions, downsizes and the introduction of concessions, these closures will radically reshape M&S's Clothing & Home space.

"Closing stores isn't easy but it is vital for the future of M&S".

M&S closures are imminent as the retail giant undergoes a huge shake up - and hundreds of people will lose their jobs.

Last year, M&S said United Kingdom and worldwide closures and impairments resulted in £190m of charges, which were partly responsible for the retailer's decline in annual profits.

The brand wants to become "more relevant" to customers and expand its growth online - M&S wants a third of it sales to be made through its website.

They are reducing their focus on clothing and home, in a major blow to United Kingdom high streets.

Bayswater, Fleetwood Outlet and Newton Abbot Outlet will close by the end of July 2018.

The Marks & Spencer Food Hall in Whitstable
The Marks & Spencer Food Hall in Whitstable

Another nine shops have been proposed for closure including Darlington, East Kilbride and Falkirk in Scotland, Kettering, Newmarket, New Mersey Speke, Northampton, Stockton and Walsall.

He said that where stores have already closed, "encouraging" numbers of consumers were now shopping at nearby stores.

M&S would close more than 100 stores that sell both clothing and food by 2022, the company said in a statement on Tuesday.

Shares in M&S declined by as much as 3% on Tuesday following the announcement, making it the worst performing stock of the day on London's benchmark FTSE 100 index.

If comparable food sales come in negative in the fourth quarter, it would represent a year of decline in the division at a time of rapid change in the sector. Its position seemed unassailable, but since then its market share has been on a declining trend, Hinton explains. This is despite it opening more full line (clothing, home and food) department stores and adding more space during the period.

Marks & Spencer (M&S), one of the best known names in United Kingdom 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.

GlobalData has forecast that its clothing market share will be 7.6% this year - nearly halving in two decades - despite opening more stores selling clothing, homewares and food under the one roof.

NFL Teams Will be Fined if Players Kneel During National Anthem
The protests began almost two years ago when Colin Kaepernick protested during the anthem for the first time in August 2016. Art Rooney II, the president of the Pittsburgh Steelers , said the policy was the result of extensive consultation.

Comments