Clothing out, food in for M&S
Marks & Spencer has said it is accelerating its store rotation and renewal programme which will see the creation of around 180 full-line and 400 food stores.
The retailer expects the changes will see its clothing and home selling space reduce by around 20% while increasing food space by between 10% and 15% over the next five years.
In M&S’ final results for the year ending April 1, the retailer revealed that its full-line estate had reduced by three stores in 2022/23, while its ‘Simply Food’ estate increased by five.
M&S said that in some cases, it is on track to double sales and pay back the capital it has invested within 3-4 years, including the cost of closures for relocations.
The retailer plans to open eight full-line and 10 food stores stores this financial year, while closing around 20, of which 10 will be shut for relocation. This include’s five new flagship stores in Liverpool, Leeds, Manchester, Birmingham, and Thurrock.
M&S added that over 80 stores are now in its new ‘renewal’ format, including a full-line store in Stevenage.
This comes as the retailer revealed an increase in sales for the 22/23 financial year, increasing 9.9% from the previous year to £11,931.3m.
M&S also saw an increase in profit before tax, rising 21.4% from £391.7m in 2021/22 to £475.7m.
Stuart Machin, M&S chief executive, said that the group’s strategy over the last year has driven “sustained trading momentum”.
“Despite facing significant headwinds, I am encouraged by the strong foundations established last year and excited about what we can achieve in the year ahead”, he added.