Marks & Spencer has announced plans to cut 20 stores, ten of which will be relocated elsewhere in cities, before the end of this year.
The high street staple has yet to reveal the full list of its stores which have been marked for permanent closure.
Of the ten to be relocated nearby, there will be five new ‘flagship’ department stores in Liverpool, Leeds, Manchester, Birmingham and Thurrock.
The chain also plans to open eight full stores and 10 grocery stores.
The move follows the closure of several of its outlets in recent months, including the East Kilbride store on February 25 and its Fenchurch Street store in central London a few weeks later.
Marks & Spencer has announced plans to cut 20 stores, ten of which will be relocated elsewhere in cities, before the end of this year
The chain also plans to open eight full stores and 10 grocery stores
The Meadowbank Retail Park in Edinburgh closed last month, as did the Linthorpe Road store in Middlesborough.
Chief Executive Stuart Machin said: “A year on, our strategy to reshape M&S for growth has resulted in sustained business momentum, with both companies continuing to increase sales and market share.
“Our Food and Clothing & Home businesses invested in value to shield customers from the full force of inflation, which, while impacting margin, was the right thing to do, as serving our customers is the only way to serve our shareholders.”
Marks & Spencer has revealed an increase in sales amid pressure on customer finances, but has seen profits fall over the past year due to rising costs.
Earnings were nevertheless better than expected and the group’s shares jumped 13% in early trading, reaching their highest level in more than a year.
The retail chain said sales increased in both its apparel and homeware and food divisions in the year to April.
M&S bosses hailed the performance as evidence of progress in the retailer’s recovery plan, which has seen it close dozens of its biggest stores as part of an overhaul of its store portfolio.
He said better clothing lines and revamped stores have played a big role in boosting trade.
The company’s total revenue increased by 9.6% to £11.9 billion compared to the previous year.
Marks & Spencer said better clothing ranges and revamped stores played a big part in boosting trade
Clothing and home sales rose 11.5% to £3.72billion, after a significant rise in in-store sales as shoppers flocked to the high street following the impact of Covid-19.
Meanwhile, sales from its food business rose 8.7% to £7.22 billion, compared to the previous year.
M&S also told shareholders it had a “good start” to the new financial year, despite an “uncertain” outlook for consumer spending.
It comes against a backdrop of still high levels of inflation for UK households.
New figures released by the Office for National Statistics on Wednesday showed that food CPI (consumer price index) inflation hit 19.3% last month, although this reflected a slight drop from compared to March data.
Mr Machin said the company expects recent price increases to “weather”, but stressed that there is still inflationary pressure in its supply chain due to rising costs of labor and some increases in commodity prices.
He said: “Yes, we expect things to improve a bit and we have already been able to reduce the price of some items like milk.
“As soon as the cost of the products goes down, we pass it on to the customer.
“We have some products coming down from the peaks, but for other things like eggs they are still significantly higher than they were a year ago.
“I’m sure things will roll back and improve a bit. There’s still some uncertainty, but hopefully we’ll see more of that by the fall.
The London-listed company recorded profit before tax and adjusting items of £482m for the year, up from £522.9m last year.
The retailer said the figure, which was higher than analysts’ forecasts, was partly lower due to the loss of pandemic-era commercial rate relief from the government.
It also highlighted continued cost inflation for the apparel and food divisions.
The company said it also expects to face more than £50million in energy cost increases and more than £100million in staff pay rises over the course of the coming year, but has underlined its intention to make up for this with its cost-cutting plan designed to secure an additional £150m. a year.
Mr Machin added: “A year on, our strategy to reshape M&S for growth has resulted in sustained business momentum, with both companies continuing to increase sales and market share.
“Our Food and Clothing & Home businesses invested in value to shield customers from the full force of inflation, which, while impacting margin, was the right thing to do, as serving our customers is the only way to serve our shareholders.”
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