A fall in profits during the first six months of the current tax year has meant that M&S are having to make some tough decisions about their existing stores and their strategic programme for future development.
In 2016, M&S announced plans for clothing store closures with 30 UK stores earmarked and to downsize another 45 with some of those being reduced to food only outlets. The news that underlying pre-tax profits fell by 5.3% from April to September has meant that this plan will now be implemented at a faster rate. Management has stated that they will be concentrating on stores in their most successful and lucrative areas and focusing on promoting an increase in online sales.
Only six clothing stores closures have currently taken place. Staff who have been effected have been offered the chance to move to another store whenever possible and it is reported that only a few members of staff have currently opted to accept redundancy. There are also plans to close 53 international stores which are judged to currently be operating at a loss.
A fall of 0.1% in food sales during the second quarter of this year has made M&S rethink their future for Simply Food. Instead the brand is planning a review of ranges and prices. Chief Executive Steve Rowe has been quoted as saying that the food range is too complicated and that availability is still poor. He admitted that the chain still has to address many structural issues as part of their re-organisation.
A cost review of Simply Food is also expected to be launched
News in the same category
Derbyshire’s budget supermarket shoppers will have another store to choose from soon. According to the Derby Telegraph, German retail giant Aldi is planning to open a store at a new retail park situated just twenty minutes’ drive from Derby city centre.
On Friday, the 4th October 2019, Co-Op Stores opened a new branch in the Capital Quarter in Cardiff. There’s a bakery on the premises as well as a Costa Coffee. As in other branches, this store sells a selection of fresh foods, hot foods and wine.
The Lidl company has recently submitted an application to the South Gloucestershire Council. It’s seeking permission to open yet another store on Longwell Green in Bristol.
One of the largest empty shops in Chester is at last being brought back into use. The New Look store, which closed in 2017, will be transformed into a major store for the British Heart Foundation (BHF) charity.
