UK-based retailer Marks and Spencer recently announced that it will shut around 100 stores, in order to cut costs after posting a loss in first half of this fiscal.
M&S, regarded as a barometer of UK consumer demand, is reportedly set to close around 60 food and home stores in Britain over the next five years. The company also plans to close around 53 of its international branches in 10 nations.
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Steve Rowe, Chief Executive, M&S informed, “We have now completed a forensic review of our estate both in the UK and in our international markets. These are tough decisions, but vital in order to build a future of M&S that is simpler, more relevant, multi-channel and focused on delivering sustainable returns.”
As part of the overhaul, M&S will, as reported, slash the number of directly owned stores in order to focus on joint ventures and franchise partnerships.
M&S posted a group revenue of Euro 4,993.5 million for the first half of this financial year as of 1st October 2016 compared to Euro 4,951.3 million for the same period in 2015. Additionally, international sales for the first half of fiscal 2015 stood at Euro 544.9 million as against Euro 506.6 million in the year 2015. Operating profit for this fiscal was reported as Euro 18.4 million against Euro 24.7 million in 2015.
