M&S to close 100 stores by 2022

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Signifies and Spencer plans to shut 100 stores by 2022, speeding up a reorganisation that it says is definitely “vital” for the retailer’s future.

Of the 100 stores, twenty one have already been shut and M& S i9000 has now revealed the location of fourteen further sites to close.

Below its plan , M& H wants to move a third of its product sales online and plans to have fewer, bigger clothing and homeware stores within better locations.

The newest closures will affect a total associated with 872 employees.

How can M& H get back in fashion?

“Closing stores isn’t easy however it is vital for the future of M& Ersus, ” said Sacha Berendji, the retail operations director.

He said that where stores have previously closed, “encouraging” numbers of consumers had been now shopping at nearby shops. The company has just over 1, 500 UK stores.

The particular 14 M& S stores impacted are:

  • Bayswater, Fleetwood (outlet store) and Newton Abbot (outlet store), which are all because of close by the end of July 2018
  • Clacton and Holloway Road, that will both shut by early 2019
  • Darlington, East Kilbride, Falkirk, Kettering, Newmarket, New Mersey Speke, Northampton, Stockton and Walsall, which are suggested for closure

Since M& S first introduced its closure programme in Nov 2016, 18 stores have close and three have been relocated.

The 18 closures were in Andover, Basildon, Birkenhead, Bournemouth, Bridlington, London Covent Backyard, Dover, Durham, Fareham, Fforestfach, Keighley, Portsmouth, London Putney, Redditch, Slough, Stockport, Warrington and Wokingham.

The three relocations were within Greenock, Newry and Crewe.

Analysis: Emma Simpson, BBC company correspondent

M& S i9000 store closures are always big information, especially for the towns where the stores have been reassuring fixtures on the high-street for decades.

This newest wave of closures will feel just like a body blow to locations which are already under pressure. But the hard the fact is that M& S has more shops than it needs, given our altering shopping habits.

Numerous experts believe that closing a large swathe of stores is a tough yet necessary step.

A single key question is: will these lost fashion and home product sales be recaptured online or within the fewer but better physical areas in the future?

M& T says there are encouraging signs through towns such as Warrington where this closed a town centre shop, but shoppers have since flocked to its new outlet in the retail park.

Yet this business still has a massive job in reviving its fortunes plus tomorrow’s annual results will be additional proof of that.

Retail experienced Archie Norman, who took over as M& S chairman last year, said the particular retailer has been “drifting” and guaranteed to speed up changes.

Those changes included scaling back again ambitions for its Simply Food string. It had intended to open forty stores this financial year, yet has cut that number to twenty five.

“M& S can be repositioning itself for the new store world, ” said Laith Khalaf, senior analyst at stockbrokers Hargreaves Lansdown. “Having a huge store property is no longer the powerful retail pressure that it once was. ”

The merchant is trying to spur growth right after disappointing trading over the Christmas time period.

In the three months in order to 30 December, M& S stated like-for-like sales fell at the food business, where sales have been rising, as well as at its clothes and homeware division.

Investors will be looking for evidence of enhancement in the company’s annual results upon Wednesday. Analysts are expecting pre-tax revenue of £ 573m, which would end up being down from £ 613m in the earlier financial year.

M& S stocks were down second . 6% at 292p in mid-day trading on Tuesday. They had already been worth almost 400p a year ago.

Maureen Hinton, through analytics firm GlobalData, said M& S was “perilously close” in order to losing its top spot in the united kingdom clothing market to Primark.

GlobalData has forecast that will its clothing market share will be seven. 6% this year – almost halving in two decades – despite starting more stores selling clothing, homewares and food under the one roofing.

”To create its space more productive M& S has to produce a compelling provide showcased in an inspiring environment, inch Ms Hinton said.

“Closing stores will make the space more productive and assist in improving profitability, but it still has not resolved its fundamental problem: top-line development. ”