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Marks and Spencer says to close 100 stores in overhaul

LONDON (AFP) – 

British tradesman Marks and Spencer pronounced Tuesday it will tighten some-more than 100 stores, among them many unfamiliar shops including a Champs Elysees bend in Paris, in sequence to cut costs after posting a first-half loss.

MS, regarded as a barometer of UK consumer demand, pronounced it would tighten around 60 food and home stores in Britain over a subsequent 5 years.

The association also skeleton to shiver 53 of a general branches — signalling a exit from a loss-making owned stores in 10 nations and fixation 2,100 jobs during risk.

The organisation has begun consultations over a proposals with a staff, that embody 517 workers in France, though no time support was given for a general bend closures.

“We have now finished a debate examination of a estate both in a UK and in a general markets,” pronounced Chief Executive Steve Rowe in a formula statement.

“These are tough decisions, though critical to building a destiny MS that is simpler, some-more relevant, multi-channel and focused on delivering tolerable returns.”

As partial of a overhaul, MS will condense a series of directly owned stores in sequence to concentration on corner ventures and authorization partnerships.

The group, that had re-entered a French marketplace behind in 2011, suggested it will mattock 7 loss-making stores in France — including a flagship store on Paris’ famed Champs-Elysees selling street.

The association will however keep a 11 franchised food stores in Paris — though they are shutting all wholly-owned branches in France.

The British sequence had 18 French stores before pulling out in 2001, usually to lapse a decade later.

MS combined Tuesday that it will also shiver a owned stores in Belgium, China, Estonia, Hungary, Lithuania, a Netherlands, Poland, Romania and Slovakia.

The group’s opening in Britain was strike duration by shifting sales of wardrobe and home goods.

MS posted a detriment after taxation of £58 million ($72 million, 65 million euros) for a initial half of a financial year, or 26 weeks to Oct 1. That compared with a net distinction of £140.6 million a year earlier.

Underlying pre-tax boost sank 18.6 percent to £231.3 million.

“Over a subsequent 5 years we will renovate a UK estate with circa 60 fewer wardrobe and home stores, while stability to boost a series of a Simply Food stores,” combined Rowe.

“Internationally, we introduce to stop trade in 10 detriment creation owned markets, though intend to continue to rise a participation by a clever authorization partners.”

© 2016 AFP

Article source: http://www.france24.com/en/20161108-marks-spencer-says-shut-100-stores-overhaul