Marks & Spencer plans to close 67 stores over the next five years to reduce operational costs.
The store closures will account for a quarter of the British retailer’s full-line stores and are expected to reduce the company’s overhead costs by $447 million. By early 2028, the company expects to have 180 full-line stores, down from the 247 stores it currently operates.
The idea behind reducing the footprint is to focus on top-performing stores, especially as more consumers choose to shop online.
“We are creating a fit-for-the-future store estate, with shops in great locations, that help our customers shop the way they want to,” said CEO Stuart Machin.
“We’re seeing strong performances from our recently relocated stores, and this gives us the confidence to go faster in our rotation plans while at the same time investing in bigger and better food stores,” he said.
The company said it would make an active effort to reach its goal of closing its “lower productivity, full-line” stores within the next three years.
In addition to closing stores, the retailer has outlined its strategy for rebooting its business with plans to focus more on relevant categories as consumers are cutting their monthly expenditures.
The company also plans to optimize its supply chain flows to keep up with the demand for apparel and homeware products.
