British retailer Marks & Spencer will close 67 stores over the next five years to cut operating costs. A report said the company will try to complete the closures within three years if possible.
The closures represent a 25 per cent cut across Marks & Spencer’s entire store portfolio to save £300m and cut energy bills by £100m, for a total reduction of £400m in costs.
In a presentation to investors, Marks & Spencer CEO Stuart Machin said the retailer will operate just 180 “full-line” stores selling clothing, homeware and groceries by early 2028, down from the current 247 stores.
Marks & Spencer outlines plan to close stores
The retail giant has yet to announce which stores will close and which will remain open. The retailer said it sees profitable growth in apparel and homewares and is able to generate margins in excess of 10 percent, compared to 4 percent for groceries.
The company also said it will focus on the categories that matter most to consumers, who are also grappling with rising costs. Marks & Spencer aims to eliminate supply chain inefficiencies to maximize the flow of goods in line with demand for apparel and homewares.
In addition, the network of UK distribution centers is to be streamlined and automated, and the branches are to be used for returns management in order to speed up the return of stock.
This translated and edited post previously appeared on FashionUnited.uk.