Marks & Spencer has announced plans to close approximately 30 stores over the next decade as part of an ongoing restructuring of its retail estate. The High Street stalwart has already shut or relocated 59 main stores and cut 7,000 jobs as it seeks to adapt to changing shopping habits.
The retailer reported a pre-tax loss of £201.2 million for the year to 27 March, compared with a profit of £67.2 million the previous year. The losses were driven largely by a 31.5% fall in clothing and homeware sales, which were heavily impacted by lockdowns and the closure of non-essential retail.
However, M&S saw a 6.9% rise in like-for-like food sales, boosted by its joint venture with online grocer Ocado. The partnership contributed £78 million in profit, and one quarter of every Ocado delivery now contains M&S products. The group also received £306.1 million in government support, which helped offset lost trade.
Chief executive Steve Rowe told investors: “We are committed to stores and believe they can be a true source of competitive advantage. But they need to be the right stores, in the right location, with the right services.” The company plans to open 17 new or expanded main stores over the next two years, including several former Debenhams sites.
Retail analyst Catherine Shuttleworth said the figures showed “the catastrophic effect the pandemic has had on business” but added that there were “real benefits” emerging from the Ocado tie-up. Investors responded positively, with shares rising 4% in early trading.
M&S said its transformation programme, dubbed “Never the Same Again”, had accelerated change and given it “a clear line of sight on the path to make M&S special again”. The group currently operates 254 full-line stores, of which around 30 will close gradually and 80 will be relocated or merged over the coming years.
