Marks & Spencer to close 30 stores after falling to £ 201million Business News

Marks and Spencer has announced plans to close an additional 30 stores over the next decade, after reaching an annual loss of £ 201.2million as sales of clothing and home goods fell sharply over the course of the decade. one year of lockdown.

The retailer has already closed or relocated 59 stores and cut 7,000 jobs. He plans to expand or open 17 sites over the next two years.

M&S hailed the successful launch of an online grocery partnership with Ocado, but food sales could not offset lower sales elsewhere in the business.

The loss for the year to March 27 follows a profit of £ 67.2million in the previous 12 months. Like-for-like revenue grew 1.3% during the year, but clothing and home sales fell 31.5%.

Investors ignored the news and pushed the retailer’s share price up 4% in the morning.

M&S said sales picked up in the second half of 2020 and increased further since stores reopened on April 12. Its food business grew by 6.9% excluding its hotel and franchise activities.

He also praised a strong integration with Ocado after the two companies launched their online grocery joint venture last September.

The retailer said its balance sheet was also “stronger than expected” following the impact of the pandemic.

Chris Daly, managing director of the Chartered Institute of Marketing, said M&S’s dismal results were no surprise.

“Already in the background before the pandemic due to its limited online offer, this mainstay mainstay must quickly adapt to the consequences of Covid,” he said.

“The investment in its partnership with food delivery giant Ocado has strengthened its online food offering, making it easy for customers to access quality food without having to leave their homes.”

Mr Daly said chief executive Steve Rowe has yet to deliver similar results with online clothing sales, but his new website is showing “promising” signs.

Mr Rowe said plans for the company’s overhaul are on track.

“With the right team in place to accelerate change in trading activities and build a trajectory for future growth, we now have a clear line of sight on the way to making M&S special again.

“The transformation has moved on to the next phase.”

More about this article: Read More
This notice was published: 2021-05-26 11:47:00