Marks and Spencer has announced it will open 200 new Simply Food stores in a shake-up of its UK estate following disappointing sales results.
As part of its new strategy, the retailer will close around 60 of its loss-making clothing and homeware stores over the next five years, focussing instead on its food stores.
The announcements came after the retailer reported significant reductions in sales and profits in the six months to 1 October.
Like-for-like sales in clothing and homeware were down 5.9 per cent, while food sales dropped a less disappointing 0.9 per cent.
The British chain’s five-year plan will see it convert 25 per cent of the space in its Clothing & Home stores into Simply Food outlets, with shops in 10 overseas markets, including France and China, also set to close. The proposed closure of 53 non-UK stores, could lead to 2,100 job losses, the retailer warned.
M&S already has 300 ‘full line’ stores, selling clothing, homeware and food, as well as almost 600 Simply Food shops in the UK. And with the opening of the new food outlets, the company will have more stores in more towns overall, according to CEO Steve Rowe.
Rowe commented: “We have now completed a forensic review of our estate both in the UK and in our International markets. Over the next five years we will transform our UK estate with c.60 fewer Clothing & Home stores, whilst continuing to increase the number of our Simply Food stores. In the future, we will have more inspiring stores in places where customers want to shop that complement our growing digital offer.
“Internationally, we propose to cease trading in ten loss-making owned markets, but intend to continue to develop our presence through our strong franchise partners.
“These are tough decisions, but vital to building a future M&S that is simpler, more relevant, multi-channel and focused on delivering sustainable returns.”
