Irish Stores Safe As M&S Close 53 Stores Globally
Published on Nov 8 2016 11:02 AM
British retailer Marks & Spencer confirmed that it’s 17 Irish Stores and it's online offering won’t be affected by it’s revival plans to close 53 stores globally amid plummeting profits, reports Irishtimes.ie
Steve Rowe, who took over as CEO in April is looking to cut costs and is planning to reduce it’s clothing space and to focus more on their food division. However, the retailer who operates a number of stores across Ireland, said its Irish market has “profitable with strong brand awareness, established store estates and loyal customers” so therefore will remain in business.
Alison Grainger, head of region, Republic of Ireland, said, “Marks & Spencer will continue to operate its profitable owned business in the Republic of Ireland, where there is strong brand awareness, an established store estate and loyal customer base. Customers can continue to shop with us at our 17 Irish stores and via our Irish website.”
M&S also revealed on Tuesday that it reversed a £4.2 million impairment charge, which it had previously taken in relation to five stores in Ireland.
“The reversal of the impairment charge reflects an updated view of the future cash flows from these stores primarily due to reductions in cost of goods following the significant appreciation of the euro relative to sterling during the period,” she said.
In 2015/16 the group’s international business delivered a loss of £31.5 million. It' international operating profits were down 39.6% to £55.8 million.
As part of it’s revival plan to exit its loss-making owned business, M&S will close 10 stores in China, seven in France, as and all of its stores in Belgium, Estonia, Hungary, Lithuania, the Netherlands, Poland, Romania and Slovakia over the next 12 month period.
© 2016 - Checkout Magazine by Donna Ahern