Recently, British retailer Marks & Spencer announced that, it will shut down 67 stores over the next five years to cut operational costs.
Also, it will attempt to fast-track the closures within three years, if possible.
In order to save 300 million pounds and reduce a 100 million pound, the closures equate to cutting 25 percent of Marks & Spencer’s full-line store portfolio energy bill, equating to a total reduction of 400 million pounds in overheads.
In a presentation to investors, Marks & Spencer chief executive Stuart Machin said, “The retailer will operate 180 ‘full-line’ shops, down from 247 stores, which will sell clothing, homeware and food by early 2028.”
On the other hand, the high street giant has not yet revealed about the shop opening.
The retailer said it sees profitable growth in clothing and homeware, and is capable of margins over 10 percent, versus 4 percent in food.
Also, it would focus on the most relevant categories for consumers, who must also deal with rising costs.
Marks & Spencer will tackle inefficiencies in its supply chain, to maximize flows in line with demand for its clothing and homeware categories.
It further aims to slim down and automate its UK distribution centre network and leverage stores for returns management in order to improve speed back to inventory.