Marks and Spencer, the UK clothing, homestore and food retailer, is to refocus its international business as well as exiting a number of loss-making businesses across ten different markets.
It has, however, committed to its Irish stores and continued expansion of its convenient food store model. M&S said its Irish stores are profitable, with strong brand awareness and loyal customers.
The retailer had been losing £45m annually in other international businesses in recent years. M&S will incur a once-off cost of £150m-£200m over the coming 12-month period as it closes the stores over the next five years.
M&S has 914 stores in the UK and an additional 468 international stores, with 17 of these located in Ireland.
The UK retailer will continue to increase the number of its Simply Food convenience stores, which operate under franchise partnerships. M&S has reiterated that it will open over 200 new Simply Food stores by the end of 2018/’19.
The business will refocus to become “simpler, more relevant and focused on delivering sustainable returns”, according to the retailer.
M&S’s food business continues to outperform the market, where its UK market share increased by 20 basis points in the 12-week period ending 9 October 2016, according to Kantar World Panel.
Every year, around 25% of M&S’s food range is comprised of new or improved products. For the first six months this year, food gross margins increased a further 10 basis points to reach 32.6%.
The group said that buying margins for the first six months were slightly down, partly driven by an increase in promotional sales, due to ongoing and increased competition. However, this was more than offset by benefits realised from volume growth.
It is to close some stores in China and France, as well as all of its stores in Belgium, Estonia, Hungary, Lithuania, the Netherlands, Poland, Romania and Slovakia.
Marks and Spencer, the UK clothing, homestore and food retailer, is to refocus its international business as well as exiting a number of loss-making businesses across ten different markets.
It has, however, committed to its Irish stores and continued expansion of its convenient food store model. M&S said its Irish stores are profitable, with strong brand awareness and loyal customers.
The retailer had been losing £45m annually in other international businesses in recent years. M&S will incur a once-off cost of £150m-£200m over the coming 12-month period as it closes the stores over the next five years.
M&S has 914 stores in the UK and an additional 468 international stores, with 17 of these located in Ireland.
The UK retailer will continue to increase the number of its Simply Food convenience stores, which operate under franchise partnerships. M&S has reiterated that it will open over 200 new Simply Food stores by the end of 2018/’19.
The business will refocus to become “simpler, more relevant and focused on delivering sustainable returns”, according to the retailer.
M&S’s food business continues to outperform the market, where its UK market share increased by 20 basis points in the 12-week period ending 9 October 2016, according to Kantar World Panel.
Every year, around 25% of M&S’s food range is comprised of new or improved products. For the first six months this year, food gross margins increased a further 10 basis points to reach 32.6%.
The group said that buying margins for the first six months were slightly down, partly driven by an increase in promotional sales, due to ongoing and increased competition. However, this was more than offset by benefits realised from volume growth.
It is to close some stores in China and France, as well as all of its stores in Belgium, Estonia, Hungary, Lithuania, the Netherlands, Poland, Romania and Slovakia.
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