M&S to close 67 clothes shops, open 104 Simply Food stores
Marks & Spencer Group
380.80p
17:00 07/01/25
Marks & Spencer said on Wednesday that it will close 67 larger clothing and homeware stores and open 104 Simply Food shops as part of its turnaround plan, as it highlighted "significant" cost headwinds.
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As part of its five-year plan - which it is aiming to complete in just three years - the retailer has decided to close some lower-productivity full line stores, while opening more "high productivity, high quality" food space stores.
M&S said staff costs are up around 7%, while energy costs are £40m higher than planned and could hit £100m next year with no support.
In September, Marks lifted staff pay for the second time this year, increasing the hourly rate of more than 40,000 employees by 2% to a minimum of £10.20 an hour, from £10 in April.
The company said it was operating against "a difficult economic backdrop", with "consumers seeking value everywhere".
It is aiming to cut its clothing & home space by 20%, and grow online to 50% of sales.