Marks & Spencer has to close 32 more stores as it moves away from city centers, saying many have “lost momentum” as a result of local government failures or government policies.
The keynote speaker said profits would catch up next year amid “growing pressure on costs and consumer uncertainty”.
The decision to leave Russia altogether after a temporary suspension of supplies in the light of the war in Ukraine will cost it £ 31 million, while new EU tariffs and Brexit-related marginal costs cost £ 29.6 million in profits and £ 15 million. pounds lost trade.
The retailer said it would move from high-rise buildings to more modern suburbs, such as the former Debenhams, with better access and car parking, with plans for 15 new full-range stores and 40 restaurants over the next three years.
This compares to 10 new stores opened in the last year. He said he would further reduce the space set aside for clothing and household goods, as sales fell by almost a quarter compared to four years ago, while space fell by only 10%.
He will raise £ 200 million by selling off old shops to help fund the expansion, as sales in urban centers are said to have fallen by 14% and on high streets by 8% from pre-pandemic levels, while sales increased by 22% in commercial parks. Shops in tourist centers, including stations and airports, have fallen by 39%, largely as a result of pandemic restrictions and the shift from work to home.
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“We recognize that in a multi-channel world, easy shopping and quick access are crucial to competitiveness, and in many cases we believe that downtown locations have lost momentum as a result of local government failures or government policies. As a result, much, but not all, of our relocations are on the outskirts of the city, “said a statement from M&S.
M&S revealed a year-on-year return to profitability in the 12 months to April 2, up £ 391.7 million before taxes from a loss of £ 209 million a year earlier, as sales rose 18.6% to £ 10 , 9 billion. Food sales grew by 10%, while clothing and home sales grew by 3.8%, driven by online growth. Sales at the Ocado Joint Undertaking fell 4% as shoppers returned to grocery shopping.
Steve Rowe, the outgoing CEO of M&S, said the figures: “Show that M&S has changed fundamentally. Although there is still a lot to do, the business has gone beyond proving its relevance and there is room for significant future growth. ”
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