United Kingdom retailer M&S says to shut more than 100 stores

United Kingdom retailer M&S says to shut more than 100 stores

United Kingdom retailer M&S says to shut more than 100 stores

After taking account of adjusted items of 514.1 million pounds, including the charge relating to store closures, pretax profit was 66.8 million pounds, a 62 percent fall.

The 100 stores include 21 that have already closed, with 14 more announced on May 22.

Britain's Marks & Spencer MKS.L said on Wednesday it urgently had to modernise or risk fading away as it reported a second straight decline in annual profit and booked a 321 million pounds charge for a store closure programme.

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Sacha Berendji-the retail, operations and property director at M&S said that that they are making nice advancement with their plans of restructuring their store chains for making them more relevant to the customers and to assist the online growth plans.

News of these store costs comes just a day after M&S said it will scale back its food store opening programme and will now open 15 fewer stores than planned in the year ahead.

Food revenue grew 3.9% in the year - though like-for-like sales slipped 0.3% - while Clothing & Home revenue fell 1.4% and was down 1.9% on a like-for-like basis. Heavy snowfall in March from the so-called "Beast from the East" also had an impact on sales as consumers remained indoors in March.

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In notes attached to its results, the company said the "continued migration" of clothing and home products online; the development of global competition; the growth of home delivery in food; and "the march of the discounters" all amounted to threats to its business.

"These, together with a challenging United Kingdom consumer market, mean that we have to modernise our business to ensure we are competitive and reignite our culture. Accelerated change is the only option", M&S said in a statement.

Rowe said the first phase of M&S's transformation plan - "restoring the basics" - is now well underway, with the actions taken thus far having boosted the "velocity of change".

The high-street chain which has a total of one thousand and thirty-five stores at the end of 2017-18 fiscal year, would be publishing its yearly results today.

"Alongside relocations, conversions, downsizes and the introduction of concessions, these closures will radically reshape M&S's clothing and home space", the firm said.

"If anything the need for change has become more urgent".

"The new organisation will largely be in place by July and the team is now tackling transforming our culture to make M&S a faster, lower cost, more commercial, more digital business".

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