Marks & Spencer (M&S), the British fashion bigwig, has said that it plans to reduce the number of its full line sites from 250 to 180 – especially those selling apparels and home products.
The retailer hasn’t had a good year – all thanks to lockdown-induced store closures that in particular affected its apparel sales.
The year that ended 27 March 2021 saw the fashion retailer post a worrying loss of £201 million. This is in comparison to a £67 million profit it made a year earlier.
Following the reported loss, M&S has said that it will be shutting down 30 stores over next 10 years as a part of its turnaround plan. Here it is important to mention that it has already shut down or relocated 59 full line stores, 16 food stores and 8 outlets.
The retailer said that strict social distancing measures over the year followed by huge slump in the demand for formalwear have led to 31 per cent fall in its apparel and home sales.
Consequently, the retailer witnessed the total revenue for the year drop by 31.5 per cent. The clothing and home section also saw an operating loss before adjusting items of £129.4 million.
Losses were significantly minimised in the second half of the year after M&S invested in online channels to accelerate the growth. The online sales, notably, rose by 54 per cent.
Founded in 1884, M&S generated £10,181.9 million in 2020.