Closure of Marks & Spencer stores announced

Marks & Spencer (MKS.L) plans to close one in four (25%) of its larger clothing and homeware stores and replace them with more than 100 new smaller Simply Food stores.

The retailer announced that it will reduce the number of its full-range stores by 67 by 2028, bringing the total to 180 from the current 247.

As part of its plan to focus on grocery, the retailer will open 104 Simply Food stores, bringing the total to 420.

Faced with a “difficult economic environment” and rising costs, Marks & Spencer is accelerating its turnaround plan. Although the plan will take five years to complete, it is trying to complete the move as quickly as possible, with the ideal time being three years.

Read more: Food prices hit record highs as Britons stock up on candles amid fears of power outages

M&S said the redevelopment plan does not necessarily mean the retailer will leave a town, but could involve closing an older store on the high street and opening a new branch in an out-of-town shopping centre.

Llandudno in North Wales was cited as an example, where such a change has already taken place.

M&S had previously announced the closure of 110 stores. The 67 stores announced today are included in this number, but the closures are being accelerated.

Marks & Spencer has not confirmed which stores will close.

In the face of the cost of living crisis, M&S said the value of its products was increasingly a top priority for customers, but explained that the company was also facing “significant cost headwinds”.

Regarding costs, it was said that there had been wage inflation of about 7% and that even higher inflation was expected for 2023.

Energy costs were £40 million ($44.2 million) higher than planned, and without support the company faces headwinds of more than £100 million next year.

Read more: Cost of living: Britain’s cheapest supermarket revealed

The main reason given for accelerating the pace of change was a “background of unfavorable macroeconomic conditions” to create a “higher productivity company that reduces costs, increases margins and shifts volumes into growth categories and channels.”

The retailer said its plan to restructure its stores would save it around £309 million in rental costs.

Yahoo Finance UK has requested a full list of planned store closures from Marks & Spencer.

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