Marks & Spencer Could Be Set To Announce Further Store Closures
UK clothing, home and food retailer Marks & Spencer is reported to be considering a radical change to its portfolio, as a result of falling profits.
According to the Guardian, the retailer is expected to ramp up its store-closure plan this week, as it announces its half-year trading results on Wednesday.
Earlier this year, Marks & Spencer announced plans to close six stores in the UK, but has continued to open new food-only stores across the country.
These developments have been part of the company's five-year turnaround plan, led by CEO Steve Rowe and chairman Archie Norman.
In July, Marks & Spencer posted a 0.5% decline in like-for-like sales in its home UK market in the first quarter of its financial year, with Rowe saying that the performance "was in line with expectations".
Last year, however, the retailer recorded a 63.5% decline in profit before tax. At the time, Rowe said that “the planned restructuring of M&S has come with a cost".
"We said we would recover and grow clothing and home, continue with our plans for Food growth, remove costs and simplify the business," he added. “Looking ahead, we will continue our programme of self-help in a tough trading environment."
Last month, it was reported that Marks & Spencer's head of clothing, Jo Jenkins, had resigned just a number of weeks after assuming the role.
Her departure is seen to be a blow for Rowe, who used to lead the retailer's clothing business, as the company prepares for the upcoming Christmas season.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.