Marks & Spencer will close 32 more stores as it moves away from city centers, saying many have “lost momentum” as a result of the failure of local or government policy.
The author said profits will be reduced next year amid “rising cost pressures and consumer uncertainty.”
The decision to leave Russia completely, after temporarily stopping deliveries in the light of the war in Ukraine, will cost him £ 31 million, while new EU tariffs and Brexit-related border costs had cost him £ 29.6 million in profits and £ 15 million in lost trade.
The retailer said it will move from multi-storey buildings to more modern places in the city, such as Debenhams, with better access and car parking, with plans for 15 new full-line stores and 40 food outlets. for the next three years. .
This compares to 10 new stores opened last year. He said it would further reduce the space for clothing and household items, as sales fell by almost a quarter compared to four years ago, while the space had only fallen by 10%.
It will raise £ 200 million by selling old shops to help fund the expansion, as it said sales in city centers were down 14% and sales on main streets by 8% from pre-pandemic levels, while sales increased 22% in retail parks. Travel center stores, including stations and airports, were down 39%, mainly as a result of the pandemic restrictions and the shift to work from home.
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“We recognize that in an omnichannel world, ease of shopping and quick access are critical to competitiveness, and in many cases we believe that downtown locations have lost momentum as a result of policy failure. “As a result, a large proportion, but not all, of our relocations are on the edge of the city,” M&S said in a statement.
M&S revealed a return to annual profit for the 12 months to April 2, with a £ 391.7 million pre-tax increase compared to a £ 209 million loss a year earlier, as sales rose 18.6% to £ 10.9 million. Food sales rose 10%, while clothing and household sales rose 3.8%, driven by online growth. Sales of its joint venture Ocado fell 4% as shoppers re-bought groceries in stores.
Steve Rowe, the outgoing CEO of M&S, said: “Prove that M&S has changed fundamentally. ‘substantial growth in the future’.