Marks and Spencer proposes the closure of another 8 stores

Marks and Spencer (LON:MKS) announced this Wednesday they will close another eight UK stores, affecting 468 jobs.

The new stores proposed for closure are: Andover, Basildon, Bridlington, Denton (Outlet), Falmouth, Fareham, Keighley and Stockport. If the stores close, the 468 employees affected will be redeployed or offered redeployment at other stores, before they consider redundancy, as confirmed by the company.

The announcement follows M&S’s plan to modernise their UK stores, part of ‘staying in tune’ with customers needs and improving the digital shopping experience.

The group’s Christmas trading statement revealed a strong growth in online sales as predicted, backing up the new strategy.

“We’re committed to transforming M&S for our customers, colleagues and shareholders. Stores will always be an integral part of our customer experience, alongside M&S.com, but we have to ensure we have the right offer in the right locations,” said Sacha Berendji, Director of Retail at Marks & Spencer. 

Furthermore, the company confirmed the stores in Birkenhead, Bournemouth, Durham, Forestfach, Putney and Redditch will close by the end of April. Employees will be moved to nearby stores.

The changes started in November 2016 when the group announced intentions of fluctuating 25 percent of their Clothing & Home space through closures, downsizes and/or conversions to only food stores.

Due to a fall down in sales during the festive period and plans to continue growing in the online sector, the company was urged to accelerate the process.

Furthermore, the Simply Food programme has been reassessed and M&S is planning to open in the next six months a total of 36 owned and franchise stores, generating 1,200 new roles in management and customer assistant positions. The new stores will sell food and drink, and they will offer a Collect in Store service for Clothing & Home online purchases.

Marks & Spencer has today a total of 1,025 stores in the UK; 302 Clothing, Home and Food, 684 Food-only and 39 Outlets.

Shares were down 0.95 percent, trading at 302.2p as of 11:00 am (GMT).