Today, the British multinational retailer Marks & Spencer officially announced plans to close 30 of its clothing and homeware shops in the United Kingdom and to convert others into food stores, according to Bloomberg. The announcement came after the company reported sagging sales and profits this year.
As part of his radical turnaround plan, M&S chief executive Steve Rowe intends to open 200 new Simply Food stores and to begin shifting away from fashion. The company will also be closing 53 stores outside of Britain that are posting losses in 10 different international markets, including China and France. Most of these are located in Europe, and will affect the jobs of 2,100 employees.
The downsizing in the British market will take place over the course of five years and cost approximately 350 million pounds, though M&S did not reveal how many employees can expect to lose their jobs.
The majority of shops to close down outside of Britain are located in Europe, and M&S will be pulling out entirely from Belgium, Hungary, Poland and Holland. It will also be closing seven stores in France and 10 in China. The process will take place over a 10-month period, costing the company 150-200 million British pounds.
Apart from its domestic market, M&S currently has 480 stores in 59 countries spanning Europe, Asia and the Middle East.
In total, M&S said it would have about 60 fewer clothing and homeware stores in five years’ time.
Mr Rowe said of the UK store closures: “This is about building a sustainable, more profitable business that’s relevant for our customers in a digital shopping age.”
