Marks and Spencer to reveal MORE store closures later this week
MARKS & Spencer is expected to announce more store closures this week as it reports another year of falling sales.
The closures are part of a plan announced in 2016 to slash the amount of shopfloor space devoted to its clothing and home ranges.
At the time M&S said it would axe about 60 stores across the UK – possibly affecting around 2,000 jobs.
But The Sunday Times reported at the weekend that the retailer could shut an additional 40 of its larger outlets that sell both food and clothes – meaning 100 shops would close overall.
The decision to accelerate its programme was reportedly brought about after early results from store closures – like the one in Warrington town centre – led to an increase in sales at newer out-of-town stores.
A spokesperson for M&S told The Sun Online: “We have been clear about our plans to accelerate our store closure and the action we must take to build a business with sustainable, profitable growth.”
This comes as city analysts expect M&S to report a 1.1 per cent dip in like-for-like fashion sales on Wednesday, with food sales dropping by 0.2 per cent.
In November, the retailer already posted a fall in profits of 5.3 per cent and said it will speed up its clothing store closure plans.
Martin Lane, managing editor of money.co.uk,said: “Staff at Marks & Spencer have been kept in limbo wondering whether or not their jobs are safe which is incredibly distressing for employees and their families.”
“Retail giants are facing turbulent times with competitive pressure from discount rivals and online sales. With M&S experiencing falling profits it isn’t surprising they’ve had to take this approach.
Which M&S stores are going to close?
M&S announced plans to close six stores by April with a further eight stores that are being considered for closure. The April closures were:
- Birkenhead, Merseyside
- Bournemouth, Dorset
- Durham, County Durham
- Fforestfach, Pembrokeshire
- Putney, South-West London
- Redditch, Worcestershire
A further eight stores have been earmarked for closure later this year. They are:
- Andover, Hampshire
- Basildon, Essex
- Bridlington, East Yorkshire
- Denton, Greater Manchester
- Falmouth, Cornwall
- Fareham, Hampshire
- Keighley, West Yorkshire
- Stockport, Greater Manchester
“Sadly this follows a raft of redundancies on the high street this year and I doubt it will end anytime soon. Shoppers habits are changing, purse strings are tightening and our reluctance to pay full price becomes more problematic for high street stores.”
Several large retailers have been shedding staff as they try to save costs in an increasingly tough trading environment, with both Sainsbury’s and Tesco axing thousands of middle-managers earlier this year.
Just last week, Mothercare also announced it will close 50 stores in a bid to save the struggling firm – putting hundreds of jobs at risk.
It is the latest high-street favourite forced to close stores in recent months – with New Look, Carpetright, House of Fraser, Prezzo, Byron and Toys R Us UK all announcing closures.
