Marks & Spencer has announced plans to close 30 UK stores and convert 45 more into food-only outlets as part of a sweeping overhaul that will reduce the space devoted to its struggling clothing ranges. The retailer, which operates 304 full-line stores in the UK, said the changes will take five years to complete and will involve a 10% reduction in floor space dedicated to clothing.
The company also confirmed that 53 loss-making overseas stores in ten countries will shut, affecting 2,100 jobs. The closures include ten stores in China, seven in France, and others in Belgium and Hungary, with only company-owned outlets in Ireland, Hong Kong, and the Czech Republic spared.
Chief executive Steve Rowe, who joined M&S as a Saturday boy at the age of 15, insisted the decision was not an admission of defeat. “This is not about cutting jobs, it’s about making sure we’ve got the right estate for future shopping habits,” he said. The retailer intends to open 200 new Simply Food shops and will scrap the Indigo, Collezione, and North Coast clothing labels to focus on brands like Autograph, Per Una, and Blue Harbour.
The plan, which will cost £150m over three years, failed to impress investors, with shares falling more than 5% to become the biggest decliner in the FTSE 100. Analyst Tony Shiret of Haitong said the strategy was not radical enough, adding: “We think that it should have gone further in its UK clothing space closure.”
The retreat from the high street will be a blow for towns where M&S is a key destination, particularly following the demise of BHS. Matthew Hopkinson of the Local Data Company warned: “The closure of the local M&S will have a psychological effect and feel like another nail in the coffin for that town’s high street.” With clothing sales now in their fifth consecutive year of decline, M&S is betting on online growth, which currently accounts for 17% of its clothing sales, to compensate for reduced store space.
