Marks & Spencer has outlined plans to close more than 100 stores across the UK by 2022, as it seeks to grow its online business.
The retailer made the announcement ahead of the publishing of its full-year results, which are due on Wednesday.
Here's what some of the UK's leading retail analysts had to say about the move.
Clive Black, Shore Capital
"We think that the acceleration of the store closure programme reflects [Archie] Norman and [Steve] Rowe speeding up the operating efficiency of the company and the pull forward of some of the cost savings that the company outlined back in November 2017.
"Today’s announcement for those employees at the stores earmarked for potential closure is no doubt unsettling, but is an important step in the company reshaping its store portfolio and addressing legacy cost issues."
Martin Lane, money.co.uk
“Staff at Marks & Spencer have been kept in limbo wondering whether or not their jobs are safe which is incredibly distressing for employees and their families. Some employees will now know their fates, however with further closures expected by 2020 the uncertainty will continue for many.
"The retail giants are facing turbulent times with competitive pressure from discount rivals and online sales and with their own profits and sales suffering it isn’t surprising M&S are taking this approach. Their signature luxury products are being undercut by bargain supermarkets at a fraction of the price. Shoppers expect quality and convenience for less than ever before, and M&S are struggling to compete."
Catherine Shuttleworth, Savvy
“As M&S confirm more store closures today sadly we shouldn’t be too surprised. A reshaping of their physical retail portfolio is a critical strategic step to ensure that the business is in the right position moving forwards and to stay in line with the changing UK retail landscape.
"Our shopping habits have changed and M&S has been much criticised in the past for not keeping up with them – so whilst it’s always a difficult decision to close stores, it is necessary that long-established retailers are able to adjust to changing shopping behaviours if they are to be fit for the future.”
Maureen Hinton, GlobalData
‘‘Marks & Spencer has dominated the UK clothing market for decades, but its lead as number one is perilously close to being lost to Primark this year. The closure of yet more stores will hasten the decline unless it can shift the lost sales to its online channel and transfer to its other stores. But it also has to start growing total non-food sales to stem the overall decline.
‘‘M&S has been losing share for more than two decades. In 1997, it achieved its peak clothing market share of 13.5% in the UK. Its position seemed unassailable, but since then its market share has been on a declining trend."
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine
