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Marks & Spencer sells Hong Kong stores as it retreats from overseas markets Marks & Spencer sells Hong Kong stores as it retreats from overseas markets
(35 minutes later)
Marks & Spencer is selling its stores in Hong Kong and Macau as the retailer pushes on with a wide-ranging overhaul.Marks & Spencer is selling its stores in Hong Kong and Macau as the retailer pushes on with a wide-ranging overhaul.
The clothing and food chain is selling one of its key non-UK operations to its longstanding franchise partner in the region, Al-Futtaim, for an undisclosed sum. Marks & Spencer is selling 27 stores that will keep the M&S under a franchise arrangement, which leaves Dubai-based Al-Futtaim with 72 outlets under the brand across Asia and the Middle East. The clothing and food chain is selling one of its key non-UK operations to its longstanding franchise partner in the region, Al-Futtaim, for an undisclosed sum. Marks & Spencer is selling 27 stores that will keep the M&S name under a franchise arrangement, which leaves Dubai-based Al-Futtaim with 72 outlets under the brand across Asia and the Middle East.
The move comes less than two months after M&S spared its Hong Kong operation in a reshaping of its business. It announced the closure of 30 UK stores and is converting 45 more into food-only outlets as it cut back on floor space devoted to its clothing ranges. The turnaround plan unveiled by chief executive Steve Rowe included the shuttering of 53 loss-making outlets overseas in markets including China, France and Belgium, but company-owned stores in Hong Kong were among those spared. The move comes less than two months after M&S spared its Hong Kong operation in a reshaping of its business. It announced the closure of 30 UK stores and is converting 45 more into food-only outlets as it cut back on floor space devoted to its clothing ranges. The turnaround plan unveiled by the chief executive, Steve Rowe, included the shuttering of 53 loss-making outlets overseas in markets including China, France and Belgium, but company-owned stores in Hong Kong were among those spared.
“We have substantially reshaped our International business, which has improved profitability and positioned us for growth,” said Marks & Spencer’s international director, Paul Friston. “As one of the world’s leading retail operators, with strong logistics capabilities and local expertise, Al-Futtaim is the ideal partner for us to develop and grow our business in Hong Kong and Macau.” “We have substantially reshaped our international business, which has improved profitability and positioned us for growth,” said Marks & Spencer’s international director, Paul Friston. “As one of the world’s leading retail operators, with strong logistics capabilities and local expertise, Al-Futtaim is the ideal partner for us to develop and grow our business in Hong Kong and Macau.”
Rowe’s strategic review indicated a retreat from overseas markets after the he concluded that the non-UK business was too small and knew too little about its customers in certain markets. The retailer’s foreign business lost £43m last year. In the wake of the Al-Futtaim deal, the last-remaining M&S-owned stores are in Ireland and the Czech Republic.Rowe’s strategic review indicated a retreat from overseas markets after the he concluded that the non-UK business was too small and knew too little about its customers in certain markets. The retailer’s foreign business lost £43m last year. In the wake of the Al-Futtaim deal, the last-remaining M&S-owned stores are in Ireland and the Czech Republic.
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