M&S to close 30 shops after big losses
Marks & Spencer says it will close another 30 shops over the next decade
Marks & Spencer is going to close 30 more stores over the next 10 years after posting a hefty loss for the past year after being hit hard by high street lockdowns.
M&S has already closed or relocated 59 stores but said it will speed up changes to its shops following the impact of the pandemic.
The 30 planned closures will be part of a shake-up of around 110 stores, with the majority of these sites set for relocation.
M&S said the impact of the pandemic has provided it with an opportunity to purchase new locations, with the group currently targeting six new stores in former Debenhams units.
The group current has 254 full-line stores, which sell food and clothing, but it plans to reduce this to around 180 over the next 10 years, with some of these being replaced by food-only or purely clothing and home sites.
£200 million pre-tax loss
The update came as M&S tumbled to a £201.2 million pre-tax loss for the year to March 27 after its clothing and home business was particularly hammered by pandemic restrictions
It follows a £67.2 million statutory profit in the previous year.
The group told shareholders that total revenues dropped after this slump offset an improvement in its food operations.
It reported that food like-for-like revenues increased by 1.3% over the past year but the company saw its clothing and home business report a 31.5% slump despite 53.9% online growth.
Clothing and home operations saw a £129.4 million operating loss, although M&S said the performance improved in the second half of the year.
These sales have also returned to growth since the reopening of all stores on April 12, M&S said.
M&S food business grows after Ocado link
Meanwhile, the company said it was buoyed by its food business, which saw 6.9% growth excluding its hospitality and franchise arms.
It also hailed a strong integration with Ocado after the two companies launched their online grocery joint venture last September.
The retailer said its balance sheet is also “stronger than expected” following the impact of the pandemic.
Who owns the high street brands?
Burtons and Dorothy Perkins
Online retailer Boohoo have bought both the Dorothy Perkins and Burton brands from Arcadia group. They haven't taken the actual shops though, which will permanently close.
Wallis
Fashion brand Wallis was also part of the £25.2 million deal that Boohoo made for parts of the Arcadia group, including Burton and Dorothy Perkins, which mean the Wallis shops will also leave the High Street.
Topshop & Topman
ASOS have bought this part of the failed Arcadia group, paying £292 million for brands including Topshop and Topman. The shops themselves were not part of the deal though, so it looks like they will close.
Miss Selfridge
Miss Selfridge was another one of the brands that ASOS bought alongside Topshop, Topman and HIIT and will also mean the shops will close.
Debenhams
Boohoo have also bought the Debenhams in a £55 million deal which saw the company's 242-year-old name survive but all 118 stores shut.
Oasis and Warehouse
Boohoo have been expanding for the last few years - in 2020 they bought Oasis and Warehouse's online element for £5.25 million as the shops had already closed.
Karen Millen & Coast
Boohoo also bought the brands Karen Millen and Coast in 2019 when it went into administration and stores closed.