Marks & Spencer is to open 20 flagship stores and create 3,400 jobs as part of a £500m plan to rejuvenate its high street presence following Christmas business.
The retailer, which in October said it would close 67 of its “less productive” locations selling clothing and home goods, about a quarter of its larger store holdings, said it planned to open the 20 “biggest and best” stores in the locations. across the UK next financial year.
The company plans to open eight “full line” stores, offering clothing, homeware and food, in shopping centers such as Birmingham’s Bullring and Manchester’s Trafford Centre, as well as retail parks and high streets .
A number of stores will take over former sites occupied by collapsed department store chain Debenhams.
Under the £480m investment plan, M&S will open 12 new food halls in communities including Stockport, Barnsley and the coastal town of Largs in North Ayrshire, Scotland.
Stuart Machin, the chief executive of M&S, said a significant high street presence was crucial to providing consumers with the widest possible shopping experience. The company is also expanding its Click & Collect offer to 130 stores, while its online sales increased over Christmas.
“Stores are a critical part of M&S’ omnichannel future and serve as a competitive advantage for how customers want to shop today,” Machin said. “Our store rotation program is about making sure we have the right stores, in the right place, with the right space.”
Overall, M&S said that under its five-year plan, its 247-store property would grow to 180 “full-line” sites and open more than 100 grocery sites. By its 2025/26 financial year it aims to run 420 food stores across the UK.
The company plans to expand its franchise model by expanding its range of convenience stores beyond existing partners including BP, Moto, SSP and Costa.
Last week, M&S announced it took its biggest share of the clothing and home goods market in seven years and its biggest ever share of the food market over Christmas.
“Coming from the group’s better-than-expected Christmas trading, Marks & Spencer appears to have rediscovered its mojo,” said Russ Mould, chief investment officer at AJ Bell. “Whether it can maintain momentum as headwinds provided by rising costs and increased pressures on family budgets continue to hit the business is the key test facing management.”
Marks & Spencer’s new ‘full line’ store locations
Liverpool
Bullring, Birmingham
Lakeside Thurrock, Essex
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Trafford Centre, Manchester
Purley Way, Croydon, South London
White Rose, Leeds
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Marks & Spencer’s new food halls
Stockport, Greater Manchester
Barnsley, South Yorkshire
Largs, North Ayrshire
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