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| Marks & Spencer to close 100-plus stores by 2022 in ‘radical’ plan | Marks & Spencer to close 100-plus stores by 2022 in ‘radical’ plan |
| (35 minutes later) | |
| Marks & Spencer is closing one in three of its core clothing and home branches in a dramatic retreat from the UK high street that will trigger thousands of job losses. | Marks & Spencer is closing one in three of its core clothing and home branches in a dramatic retreat from the UK high street that will trigger thousands of job losses. |
| M&S on Tuesday revealed the locations of the latest 14 stores to shut, affecting more than 600 jobs. It said the closures were vital for the future of the struggling retail business but Usdaw, the shopworkers’ union, accused M&S of “salami slicing”, as staff came to terms with a third wave of store closures. | |
| The retailer has already closed 22 clothing stores, affecting about 900 jobs, as part of a “radical transformation” plan intended to tackle years of falling sales and profits. The cull is part of a plan announced 18 months ago by the chief executive, Steve Rowe, to slash the amount of shopfloor space devoted to M&S’s clothing ranges. | The retailer has already closed 22 clothing stores, affecting about 900 jobs, as part of a “radical transformation” plan intended to tackle years of falling sales and profits. The cull is part of a plan announced 18 months ago by the chief executive, Steve Rowe, to slash the amount of shopfloor space devoted to M&S’s clothing ranges. |
| Initially Rowe said 30 stores would close but as sales move online the company has decided to axe 100, eliminating 25% of the floor space devoted to clothing and homeware. | |
| Sacha Berendji, the Marks & Spencer retail, operations and property director, said the company was trying to make its store estate “more relevant” and better able to support the growth of its website. | Sacha Berendji, the Marks & Spencer retail, operations and property director, said the company was trying to make its store estate “more relevant” and better able to support the growth of its website. |
| The latest update means the locations of 36 of the stores earmarked for closure have been announced so far. However, with another 64 branches still to be named, the process is creating huge uncertainty for staff. | |
| “Closing stores isn’t easy but it is vital for the future of M&S,” said Berendji. “Where we have closed stores, we are seeing an encouraging number of customers moving to nearby stores … which is why we’re continuing to transform our estate with pace.” | |
| Three stores – Bayswater, Fleetwood outlet and Newton Abbot outlet – will close by the end of July while Holloway Road in London and Clacton-on-Sea in Essex will close by early next year as they are replaced by nearby food-only outlets. | Three stores – Bayswater, Fleetwood outlet and Newton Abbot outlet – will close by the end of July while Holloway Road in London and Clacton-on-Sea in Essex will close by early next year as they are replaced by nearby food-only outlets. |
| Darlington, East Kilbride, Falkirk, Kettering, Newmarket, New Mersey Speke, Northampton, Stockton and Walsall are proposed for closure and will enter a period of consultation with 626 affected employees. M&S said it would aim to redeploy staff before considering redundancies. | Darlington, East Kilbride, Falkirk, Kettering, Newmarket, New Mersey Speke, Northampton, Stockton and Walsall are proposed for closure and will enter a period of consultation with 626 affected employees. M&S said it would aim to redeploy staff before considering redundancies. |
| The Usdaw national officer David Gill said: “Staff in all M&S stores were extremely concerned about what the future holds when the company announced a wide-ranging store reorganisation in November 2016. | The Usdaw national officer David Gill said: “Staff in all M&S stores were extremely concerned about what the future holds when the company announced a wide-ranging store reorganisation in November 2016. |
| “At the time they did not say where the axe will fall by detailing which stores are set to close,” said Gill. “Today we’ve seen a third wave of closures announced, which is devastating news for the staff in those stores and the uncertainty continues for everyone else. This salami slicing approach to reorganising the business is extremely distressing for the staff.” | “At the time they did not say where the axe will fall by detailing which stores are set to close,” said Gill. “Today we’ve seen a third wave of closures announced, which is devastating news for the staff in those stores and the uncertainty continues for everyone else. This salami slicing approach to reorganising the business is extremely distressing for the staff.” |
| On Wednesday M&S is expected to report pretax profits of £573m, down from £614m in 2017, marking the second consecutive year of declining profits. Sales of clothing and home products at established stores are forecast to be down 1.1%, and food sales down 0.2%. | On Wednesday M&S is expected to report pretax profits of £573m, down from £614m in 2017, marking the second consecutive year of declining profits. Sales of clothing and home products at established stores are forecast to be down 1.1%, and food sales down 0.2%. |
| The GlobalData group retail research director, Maureen Hinton, said M&S was in danger of losing its crown as the UK’s largest clothing retailer. | The GlobalData group retail research director, Maureen Hinton, said M&S was in danger of losing its crown as the UK’s largest clothing retailer. |
| ‘‘Marks & Spencer has dominated the UK clothing market for decades, but its lead as number one is perilously close to being lost to Primark this year,” said Hinton. “The closure of yet more stores will hasten the decline unless it can shift the lost sales to its online channel and transfer to its other stores. But it also has to start growing total non-food sales to stem the overall decline.” | ‘‘Marks & Spencer has dominated the UK clothing market for decades, but its lead as number one is perilously close to being lost to Primark this year,” said Hinton. “The closure of yet more stores will hasten the decline unless it can shift the lost sales to its online channel and transfer to its other stores. But it also has to start growing total non-food sales to stem the overall decline.” |
| In 1997 M&S achieved its peak clothing market share of 13.5% in the UK but the past two decades have seen the lead chipped away to 7.6% just ahead of Primark on 7%, according to figures from the GlobalData Retail Intelligence Centre. | In 1997 M&S achieved its peak clothing market share of 13.5% in the UK but the past two decades have seen the lead chipped away to 7.6% just ahead of Primark on 7%, according to figures from the GlobalData Retail Intelligence Centre. |
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