M&S to close 100 stores by 2020 as CEO expects profits slump

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M&S store closures
// M&S to accelerate store closure programme
// It aims to shut 100 stores by end of 2020
// It has closed 14 stores since the end of March, making a total of 63 closures in just over 2 years
// M&S chairman Archie Norman & CEO Steve Rowe anticipate a drop in annual profits

Marks and Spencer has said it is focusing on closing down 100 outlets by the end of next year, speeding up its store closure scheme by two years.

The British retailer initially aimed to shut 100 stores by 2022, and has closed 14 stores since the end of March, making a total of 63 closures in just over two years.

The news follows M&S chairman Archie Norman and chief executive Steve Rowe anticipating a drop in annual profits when it releases its full year results on Wednesday, according to The Times and Sunday Telegraph.

In the 13 weeks to December 29, total UK sales declined by 2.7 per cent to £2.7 billion.

M&S is reportedly eyeing job cuts in its clothing and home teams as it aims to simplify operations.

According to Drapers, 47 roles could be made redundant across buying, merchandising, marketing, supply chain and logistics in order to speed up decision-making processes.

Over 1000 people currently work in M&S’s clothing and home teams.

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5 COMMENTS

  1. We need to reinvent our High Streets, people are falling out of love with internet shopping, M&S I for one think your making a big mistake you need to make your stores more attractive to shop in. Property needs to be less expensive to rent the government needs to drop the business taxes, subsidies public transport andin the long run more people in work and less cars going into the out of town malls clogging up the roads.

  2. M and S are closing the most profitable stores in smaller market towns that actually generate the most profit per square foot.

    I think a lot of the closures stems from the fact that M and S do not want the costs of removing asbestos and spending money to invest in properties.

    The Deal store in Kent closed despite consistently being profitable and M and S are losing custom to the remaining food stores as little has migrated to the stores they have kept open.

    The same with Ashford town centre which should have seen a much bigger general store for a catchment of it’s size.

    M and S say they want to return to Deal well there is the Betteshanger Business Park which could host a food and café store and keep retail in that town.

    The stores closing are going to hurt M and S.
    Convert them by all means to food but don’t cut your nose off to spite your face.

    M and S clothing is also poor quality for the pricing. Go back to British made that justify those prices.
    Dull and boring.

  3. I’ve never shopped in M&S because it has never had anything I’ve particularly liked. They didn’t move with the times and it’s hardly surprising they aren’t surviving. I actually thought they would have disappeared long ago. Retailers need to find a niche market and work at it not sell the same things they have been selling for decades especially when they are dull and dowdy in the first place.

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