M&S to Shut a Third of Core Retailer Property Over a Decade
By James Davey
The British retailer, within the midst of its newest turnaround try after many years of failed reinventions, has closed or relocated 59 such “full line” shops during the last three years, leaving it with 254.
Its new goal is to have a totally modernised core of about 180, along with its chain of food-only shops.
CEO Steve Rowe mentioned that may be achieved by “rotating the property” at 110 areas. About 35 full line shops will likely be relocated, about 45 will turn out to be meals shops and about 30 websites will likely be exited over a ten yr interval, he instructed reporters after M&S revealed 2020-21 outcomes.
“The market dynamics have modified and the impact of the pandemic implies that we have to transfer sooner,” Rowe mentioned.
“The excellent news is that there has hardly ever been a greater time to accumulate new house.”
Rowe mentioned M&S has 17 new or prolonged full line shops in planning, together with six former Debenhams websites, within the subsequent two years.
Debenhams collapsed in December, with its final shops closing earlier this month.
To assist fund the shop property plans, M&S plans to boost no less than 200 million kilos ($283 million) by redeveloping freehold and lengthy leasehold shops, together with its flagship Marble Arch retailer in central London.
“We’re dedicated to shops and imagine they may very well be a real supply of aggressive benefit, however they do should be the proper shops in the proper location with the proper providers and so they need to work with on-line,” added Rowe.
M&S estimated the money prices of the programme at about 260 million kilos.
($1 = 0.7066 kilos)
(Reporting by James Davey. Modifying by Mark Potter)