×
142
Fashion Jobs
SAROJ JALAN
Marketing Strategist
Permanent · KOLKATA
ADD UR CO LLP
Production Manager
Permanent · Chennai
THE GLOBAL ZONE HR SERVICES
Production Manager/ Supervisor/ Incharge
Permanent · Pune
PUMA
Manager - Digital Marketing
Permanent · Bengaluru
THE BANYAN HR CONSULTS
Brand Manager For Leading Women's Wear Garments CO at Coimbatore
Permanent · Coimbatore
LEVI'S
Manager, Retail Merchandising (Ebo)
Permanent · Bengaluru
GLAN MANAGEMENT CONSULTANCY
Senior Buyer Lingerie (Knits Western Wear) - Retail Brand
Permanent · GURUGRAM
JOB INDIA
Asst. Manager E-Com Operations (Garments Retail) Gurgaon
Permanent · Faridabad
VASTRAKALA EXPORTS
Quality Manager
Permanent · CHENNAI
PEOPLE ALLIANCE WORKFORCE PRIVATE LIMITED
Manager / in Charge - Production/Quality/Cutting - Garments Industry
Permanent · Bhiwandi
MINT AND MILK COMMUNICATIONS
Senior Account Executive
Permanent · MUMBAI
PUMA
Manager- Buying (Apparel)
Permanent · Bengaluru
PUMA
Manager- Business Intelligence
Permanent · Bengaluru
PUMA
Manager- Trade Compliance
Permanent · Bengaluru
PUMA
Manager- Supply Planning
Permanent · Bengaluru
PUMA
Senior Manager - Performance Marketing- Marketplac…
Permanent · Bengaluru
PUMA
Regional Sales Manager- Mbo (South)
Permanent · Bengaluru
PUMA
Manager- Returns And Spf Operations
Permanent · Bengaluru
PUMA
Manager Merchandising
Permanent · Bengaluru
PUMA
Project Manager- Operations
Permanent · Bengaluru
PUMA
Manager- Logistics Operations
Permanent · Bengaluru
PUMA
Warehouse Manager-D2C
Permanent · Bengaluru
By
Reuters
Published
Nov 8, 2016
Reading time
3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

M&S to close stores at home and abroad as profits fall

By
Reuters
Published
Nov 8, 2016

Britain's Marks & Spencer said it would shut about 30 stores at home and 53 abroad, with its new boss seeking to revive the retailer by focusing more on food and less on its struggling clothes and homewares ranges.

The retailer, whose shares have fallen 22 percent so far this year, reported an 18.6 percent slump in first-half profit and another fall in quarterly clothing sales.


Marks & Spencer will streamline its British store estate of over 900 stores over five years and detailed a rationalisation of its international operations


Steve Rowe, a 26-year company veteran, took over as CEO in April and has the tough task of reviving a 132-year-old British institution that has fallen out of fashion over the last decade.

"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," he said.

So far, Rowe's priority has been trying to turn around M&S's underperforming clothing and homewares business.

But on Tuesday he outlined how the firm will streamline its British store estate of over 900 stores over five years and detailed a rationalisation of its international operations.

M&S would reposition about 25 percent of its UK clothing and home space, closing about 30 full line UK stores and changing around 45 stores to only sell food. Other stores would be re-located.

The cost of the programme would be 50 million pounds for the next three years, rising to about 100 million pounds in years four and five.

Expansion will focus on M&S's food business, which contributes over half of group revenue and about a third of profit. In May Rowe said M&S would add an additional 200 food shops by 2019.

M&S will also exit its loss-making owned business across 10 international markets, including France and China, at a cost of 150-200 million pounds over the coming 12 month period, thereby eliminating annual losses of 45 million pounds, leaving it with franchised stores.

The firm currently trades from 468 overseas stores across 58 international markets, with 194 owned stores and 274 franchise stores.

Rowe has pledged to revive M&S's clothing by improving ranges and availability, cutting prices and reducing promotions.

However his plan, outlined in May, came with a warning of a short-term dent to sales and profit.

M&S reported an underlying pretax profit for its first half to Oct. 1 of 231.1 million pounds - better than analysts' consensus forecast of 216 million pounds but down from 284 million pounds a year earlier.

Second-quarter clothing and home sales at stores open over a year fell 2.9 percent - ahead of analysts' average forecast of down 3.9 percent and an improvement on a first quarter slump of 8.9 percent which was its worst performance for a decade.

Second quarter like-for-like food sales fell 0.9 percent.

M&S said that given the recent depreciation of sterling it now expects growth in the clothing and home gross margin of between 0 and 50 basis points for the 2016-17 year, down from previous guidance of up 50-100 basis points.

M&S maintained its interim dividend at 6.8 pence but said it would not make an additional return of cash to shareholders in the second half due to the costs of its plan and uncertain market conditions.

Shares in group were up 0.5 percent in early trading.
  

© Thomson Reuters 2022 All rights reserved.