Marks and Spencer has announced that it will be closed 14 stores, impacting 872 jobs under a radical restructuring program that will lead to 100 shops have closed their doors.
The last tranche of the closing of the store comes as the CEO of the company Steve Rowe sent the five-year plan to turn around the business, battles to reverse a long term decline in clothing sales.
In total, more than 100 m&a shops will close by 2022, with 21 of them already closed. Previous close is included in international stores, such as flagship store on the Champs Elysees in Paris.
The seller said that its closure was in accordance with the goal of making at least a third of their sales online.
14 clothing and home stores proposed for closure in 2018-19 include outlets in bayswater, Fleetwood and Newton Abbot – all three of which will begin towards the end of July 2018.
Identified in 14 m and the store to close
M&s confirmed that 872 employees will be affected and will be either transferred or dismissed.
Sacha Berendji, retail, operations and property Director at marks & Spencer, said: “we have made good progress with our plans to change our estate store to be more relevant to our customers and support our online growth plans.
“Closing stores is not easy, but it is vitally important for the future of M&S. where we have closed stores, we are seeing a significant number of customers arriving at nearby stores and enjoy shopping with us in the improvement of the environment, which is why we continue to transform our property from PACE”.
M&s has 1,035 stores in the UK, 300 of which have space allocated for clothes.
Marks and Spencer
On Monday, the company has expanded its Board with two new non-Executive Directors. Bickerstaff Katie, previously UK and Ireland boss welder seller, Dixons Carphone, and peep Macrosty, who led the accounting giant ey in the corporate Finance business, will join the seller.
Analysts expect M&s to report 7pcs decline in profit before tax to £573m on Wednesday, prompting fears he may fall out of the index blue chip index the FTSE 100.
Shares in M&s has almost doubled in price after reaching a high of 594p in 2015. They fell by 1.5 PC at 295p in morning trade.
While marks and Spencer occupies a leading position on the apparel market in the UK for decades, its position as a retailer of clothing has a large market share, is now “dangerously close lost in primark this year”, according to Maureen Hinton, firm globaldata data.
In 1997, m&s, reached a peak clothing market share of 13.5 PC in the UK, but today is just 7.6 PC share, compared with a 7pc cut in the same way.
Miss Hinton said: “the closure of even more stores will accelerate the fall if it cannot shift the losses from the sales of its Internet channel and its transfer to other stores. But it also should start to grow total sales to stop the overall decline.”
British top 10 clothing brands market share 2008 to 2018
David Gill, national officer at shopworkers Union Usdaw, said: “this salami-slicing approach to the reorganization of the business is very distressing for the staff.”
“Usdaw has thousands of members working for Marks & Spencer and the staff should now, more than ever, performance and support of the independent trade Union.
“It’s just unfair that [M&s] still refuse their employees access to Usdaw, taking a decision on their behalf not to join a Union”.