This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7814987.stm
The article has changed 17 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| M&S to close stores and cut jobs | M&S to close stores and cut jobs |
| (about 1 hour later) | |
| Marks and Spencer plans to close 25 of its small Simply Food stores and another two of its normal stores. | Marks and Spencer plans to close 25 of its small Simply Food stores and another two of its normal stores. |
| The closures will mean the loss of 780 jobs. The retailer is also planning to cut 450 head office jobs. | The closures will mean the loss of 780 jobs. The retailer is also planning to cut 450 head office jobs. |
| The announcement came with its Christmas trading statement. In the 13 weeks to 27 December, its UK like-for-like sales fell by 7.1%. | The announcement came with its Christmas trading statement. In the 13 weeks to 27 December, its UK like-for-like sales fell by 7.1%. |
| M&S warned that its margins would be lower this year as a result of discounting, especially in food. | M&S warned that its margins would be lower this year as a result of discounting, especially in food. |
| In the run-up to Christmas, the retailer held two sale days where it cut prices by 20%. M&S said that it had 15% less stock when it began its sale on 27 December than it had the previous year. | In the run-up to Christmas, the retailer held two sale days where it cut prices by 20%. M&S said that it had 15% less stock when it began its sale on 27 December than it had the previous year. |
| Pension cuts | Pension cuts |
| Overall group sales fell by 1.2%, helped by a 26.9% increase in international sales. | Overall group sales fell by 1.2%, helped by a 26.9% increase in international sales. |
| The days of laurels and awards for Marks' well-known executive chairman probably feel to him like a lovely distant memory Robert Peston, business editor, BBC News class="" href="http://www.bbc.co.uk/blogs/thereporters/robertpeston/2009/01/ms_no_ordinary_downturn.html">Read Robert Peston's blog class="" href="http://newsvote.bbc.co.uk/2/shared/fds/hi/business/market_data/shares/3/23190/intraday.stm">Check M&S share price | |
| In addition to the job cuts, M&S plans to keep its costs under control by capping increases in its staff's pensionable pay to 1% per year, reducing the liabilities of its final salary pension scheme. | In addition to the job cuts, M&S plans to keep its costs under control by capping increases in its staff's pensionable pay to 1% per year, reducing the liabilities of its final salary pension scheme. |
| There will also be changes to the early retirement benefits for staff who joined before 1996. | There will also be changes to the early retirement benefits for staff who joined before 1996. |
| "We are aware that the proposed changes set out above will be difficult for those members of staff impacted," said M&S boss Sir Stuart Rose. | "We are aware that the proposed changes set out above will be difficult for those members of staff impacted," said M&S boss Sir Stuart Rose. |
| "But given that we expect challenging economic conditions to continue for at least the next 12 months we believe we are taking the right action to maintain the strength of our business." | "But given that we expect challenging economic conditions to continue for at least the next 12 months we believe we are taking the right action to maintain the strength of our business." |
| The better news for the business was that it had maintained its market share in the clothing business, saying it had done particularly well in lingerie and childrens' clothing. | The better news for the business was that it had maintained its market share in the clothing business, saying it had done particularly well in lingerie and childrens' clothing. |
| M&S also said 23 December had been its record day for food sales, with sales of more than £50m. | M&S also said 23 December had been its record day for food sales, with sales of more than £50m. |
| Have your been affected by issues covered in this story? Are you a Marks and Spencer employee? Send us your comments using the form below. | |