Supermarket chain Marks & Spencer (M&S) is to venture back into mainland Europe after a decade-long hiatus away from the region.
Theretailer is set to re-acquire some of the properties that it exited when it closed its entire continental chain, according to UK newspaper reports.
It is understand M&S is to re-enter the Spanish and French markets as part of new CEO Marc Bolland's review of the chain next week.
The supermarket was heavily criticised when it closed down its European operations. The move saw 3,350 jobs go in Europe.
According to UK newspaper The Telegraph,M&S is to acquire nine shops from Spanish chain El Corte Inglé and 18 French shops that it let go in a deal with Galeries Lafayette, the French retailer.
This could include an outlet on Paris's Boulevard Haussmann that was M&S's first-ever European store when it opened in 1975.
Thepotential cost to M&S of taking back the stores is not known. In 2001 it sold the nine Spanish stores for a reported ?€150m but market prices have risen since.
M&S's European shops traded successfully over the 1980s and 1990s. In 1997 M&S's continental operation contributed £38m (€43.6m) of profits, but by 2000 the division made a £6.1m (€7m) loss, and in the first half of 2001 losses widened to £10.8m (€12.4m).
M&Shas 320 shops overseas but the vast majority of these stores are run asfranchises and it has no wholly-owned stores in Western Europe and has already outlined growth plans in China and India. M&S have so far not commented on the speculation.
No comments yet