Marks & Spencer to shut 100 stores by 2022 amid online push

Casey Dawson
May 23, 2018

M&S back in November 2016 introduced a five-year restructuring plan of its United Kingdom stores in mid of the aggressive competition from supermarts and budget garment chain-Primark, as well as from the online giants like-Amazon.

Rowe's plan is the latest in a series of efforts to update the 134-year-old retailer, which has struggled to compete with the rise of cheap fast fashion chains and low-priced food retailers.

Back in 2016, M&S embarked upon a five-year overhaul of its United Kingdom stores amid fierce competition from supermarkets and budget garment chain Primark - and particularly from online giants like Amazon.

Profit before tax and adjusting items was down 5.4 per cent to £580.9 million from £613.8 million the year before.

M&S shares have fallen 26 percent over the previous year and it risks being booted out of the FTSE 100 index as it is now worth less than both online grocer Ocado and online fashion website ASOS, starkly illustrating how shopping habits have changed in only a decade. "Accelerated change is the only option", said M&S.

Powerful Northeast Storms Kill Two, Snarl Commutes, Knock Out Power to Thousands
Rainfall totals likely will be the highest in the mid-Atlantic, where more than 4 inches is possible in certain spots. She and her mother were sitting inside an SUV in Newburgh, New York when a tree came crashing down on top of them.

As of the end of March, the retailer had 1,035 United Kingdom stores, made up of 300 clothing, home and food stores, 696 food-only stores and 39 outlets. "These changes come with short term costs which are reflected in today's results", said Steve Rowe, Marks & Spencer CEO in a statement.

Its full year results for the year ended March 31st, 2018, group revenue was up marginally to £10.7 billion, but profit after tax fell 74.8 per cent to £29.1 million from £115.7million.

"And we're concentrating on tackling the culture of the business, making M&S a faster, lower cost and more commercial digital business".

Marks & Spencer has become the latest and most high-profile high street name to announce a round of store closures, pilling further woe on the beleaguered retail sector. Various other issues need to be urgently addressed, including the supply chains in both Clothing & Home and in Food requiring significant upgrades, its online capability being behind the best of its competitors and its sluggish website.

"This is vital as we start to leverage the strength of the M&S brand and values across a family of businesses to deliver sustainable, profitable growth in three to five years".

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER