THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE

Marks & Spencer to close 60 UK clothing and home stores

Marks & Spencer has said it plans to close around 60 UK clothing and homewares stores as it reported that its six month underlying pre-tax profits have dropped by 18.6% to £231.3 million.

FASHION

Marks & Spencer to close 60 UK clothing and home stores

Marks & Spencer has said it plans to close around 60 UK clothing and homewares stores as it reported that its six month underlying pre-tax profits have dropped by 18.6% to £231.3 million.

In a statement, the company said it will transform its UK estate over the next five years while continuing to increase the number of Simply Food stores.

Steve Rowe, Marks & Spencer chief executive, said: “In May, we laid out a number of questions which we would answer as part of our strategic review. We committed to creating a simpler business with customers at its heart, and taking action to start to recover our Clothing & Home business and continue to grow in Food.

“Our aim is to build a sustainable business which will delight our customers, provide a robust foundation for future growth and deliver value for our shareholders in the long term. We have made good progress on our plans and customers are already noticing a difference, particularly in Clothing & Home.”

Looking overseas, Marks & Spencer is proposing to close 53 stores as it exits 10 loss-making owned markets in China, France, Belgium, Estonia, Hungary, Lithuania, the Netherlands, Poland, Romania and Slovakia.

While total revenue was flat in the six months to 1 October, food sales grew by 4% on a total basis but declined by 0.9% on a like-for-like basis. Total clothing and homeware sales fell by 5.3% while like-for-like sales declined by 5.9%.

In the UK total sales rose by 0.1% but fell 3% on a like-for-like basis. International sales dropped by 1%.

Marks & Spencer said product was key to recovering and growing its clothing and home sales. It now has 10% fewer clothing lines and has introduced a more contemporary colour palette for the autumn

It has also changed the layout of its stores with more of clothes grouped together in product categories, rather than in brand co-ordinated departments. In addition, the company has hired 3,300 new customer assistants in areas such as fitting rooms and till points.

Marks & Spencer said the performance of new Simply Food stores was ahead of expectations with stores opened in the past year exceeding sales forecasts by 17%. It is planning to open over 200 new Simply Food stores by the end of 2019.

Commenting on the review of the store estate, Rowe said: “These are tough decisions, but vital to building a future Marks & Spencer that is simpler, more relevant, multi-channel and focused on delivering sustainable returns.”

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The HR Summit 2018
The HR Summit 2018
Wednesday 3 October 2018
The Cavendish Conference Centre, London W1
The 10th HR Summit 2018, The Cavendish Conference Centre, London W1, 3rd October 2018
The Retail Design Seminar 2018
The Retail Design Seminar 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Seminar 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
Fix The Dinosaur Roundtable 2018
Fix The Dinosaur Roundtable 2018
19 October 2018
The Euston Suite, The Hallam, 44 Hallam St, London W1W 6JJ
A Masterclass in IBMi Legacy Issues