Marks & Spencer to close two East Mids stores as profits tumble
Marks & Spencer is to close two East Midlands store as part of “vital” plans to shut 100 outlets by 2020.
M&S will close 14 more stores imminently, including those in Northampton and Kettering.
Sacha Berendji, director of retail operations at the company, said: “Closing stores isn’t easy but it is vital for the future of M&S.”
M&S closed 21 stores earlier this year.
The news comes as the retailer reported a drop in profits of 62% this morning (23 May).
Profits for the year-ending 31 March came in at £66.8m – down from £176.4m the previous year. Earnings per share also crumbled – down from 7.2p to 1.6p this year.
Steve Rowe, Marks & Spencer CEO said: “At our half year results in November I outlined the need for accelerated change at M&S. The first phase of our transformation plan, restoring the basics, is now well under way and the actions taken have increased the velocity of change running through our business. These changes come with short term costs which are reflected in today’s results.
“There are a number of structural issues to address and we are taking steps towards fixing these. The new organisation will largely be in place by July and the team is now tackling transforming our culture to make M&S a faster, lower cost, more commercial, more digital business. This is vital as we start to leverage the strength of the M&S brand and values across a family of businesses to deliver sustainable, profitable growth in three to five years.”
