Marks and Spencer to close 30 stores after £200m losses

26 May 2021, 11:16

M&S has announced it will accelerate to the "next phase" of its transformation plan
M&S has announced it will accelerate to the "next phase" of its transformation plan. Picture: Getty

By Daisy Stephens

Marks and Spencer has announced it will speed up the closure of 30 stores as the retailer feels the impact of the pandemic.

It has already closed or relocated 59 stories but has said it is accelerating the “next phase” of its long-term transformation plan after suffering a £201.2 million pre-tax loss for the year to March 27.

Whilst food sales were up, sales in the home and clothing sections slumped as a result of high street lockdowns, although they have improved since non-essential retail opened up again on April 12.

Read more: Cummings: Officials feared PM would try to be injected with Covid on TV to stop 'panic'

Read more: Doctors warned to look for signs of stroke in AstraZeneca vaccine patients

Steve Rowe, chief executive at Marks & Spencer, said: "In a year like no other we have delivered a resilient trading performance, thanks in no small part to the extraordinary efforts of our colleagues.

"In addition, by going further and faster in our transformation through the Never The Same Again programme, we moved beyond fixing the basics to forge a reshaped M&S.

"With the right team in place to accelerate change in the trading businesses and build a trajectory for future growth, we now have a clear line of sight on the path to make M&S special again.”

The rise in online shopping was not enough to offset the losses caused by lockdowns
The rise in online shopping was not enough to offset the losses caused by lockdowns. Picture: Getty

The retail giant said it was buoyed by its food sales, helped by its strong integration with Ocado after the two companies launched their online grocery joint venture last September.

However, whilst the pandemic is providing opportunities for M&S, the group is also expecting to be hit by between £42 million and £47 million in Brexit costs for the current year, particularly affecting its business in the Republic of Ireland and Northern Ireland.

M&S has not yet revealed the list of stores it has earmarked for closure.

Read more: Government 'updating' local Covid guidance after confusion

The planned closures will be part of a shake-up of around 110 stores, with the majority of these sites set for relocation.

The group current has 254 full-line stores, which sell food and clothing, but it plans to reduce this to around 180 over the next 10 years, with some of these being replaced by food-only or purely clothing and home sites.

Topshop also buckled under the weight of the pandemic
Topshop also buckled under the weight of the pandemic. Picture: Getty

M&S is not the first retailer to feel the strain of a year of on-and-off Covid restrictions.

Debenhams closed its doors completely on May 15 after its financial woes were exacerbated by the pandemic, although it sold its brand and website to online retail giant Boohoo.

In a similar move, Topshop, Topman, Miss Selfridge and HIIT were sold to ASOS after the impact of Covid-19 forced the Arcadia Group into administration.

However, there are signs that the high street is beginning to recover.

The Office for National Statistics (ONS) revealed data last week that showed in-store high street sales had rocketed as non-essential shops reopened on April 12.

Sales were almost double what they were in April 2020, when the country was in lockdown.

Edinburgh residents react as Debenhams collapses

The next phase of the government’s roadmap out of lockdown is currently due to take place on June 21, although the rise in cases of the Indian variant may derail the plans.

Surge testing, new guidance and a ramped-up vaccination programme have been employed in areas where the Indian variant is circulating.

More Latest News

See more More Latest News

The immunotherapy drug pembrolizumab has been effective in the treatment of advanced head and neck cancers

Immunotherapy drug 'first breakthrough in 20 years' for head and neck cancer treatment

Used E-Cigarette

Disposable vapes banned from Sunday in bid to improve health and cut 'avalanche' of litter

EuroMillions - Photo Illustration

Lucky EuroMillions winner could snatch up £199m jackpot in UK record

Loretta Swit presents a tribute to 'Mr. Rogers' at the 45th annual Daytime Emmy Awards on April 29, 2018

M*A*S*H star Loretta Swit dies aged 87

The study is funded by the Sarah Harding Breast Cancer Appeal, a charity set up in the name of the Girls Aloud singer who died of breast cancer aged 39

Study led by Sarah Harding's doctor could see NHS offer breast cancer checks to women in their thirties

Exclusive
A prison officer was stabbed with a weapon that may have been delivered to Long Lartin prison by a drone.

Prison officer stabbed with weapon 'likely sent in by drone', union chief tells LBC News as he warns 'it's a risk every shift'

White House AI Hack Triggers Global Security Fears as Voice-Cloning Threat Grows

White House AI voice-cloning hack spark security fears as deepfake of Trump's Chief of Staff triggers global alarm

Sanitation workers load rubbish into an automatic garbage truck in Long Island, New York

Man found dead 'buried under rubbish' after bin he was sleeping in was emptied into bin lorry

Chinese President Xi Jinpingmeets with his U.S. counterpart Donald Trump.

China hits back at Trump after he accuses it of 'totally violating' tariff agreement

Trump has responded to a question from a reporter about the Macrons

‘Not good’: Trump responds to question about video of Macron being 'slapped across face' by wife Brigitte

Levi Bancroft, 22,  was sentenced on Friday, 30 May at Southwark Crown Court for four counts of rape involving three victims

Serial rapist, 22, who raped two 'vulnerable' teenage girls and a transgender woman sentenced to life in prison

Screengrab from CCTV footage showing Jay McGinty, 37, at the entrance to Claridge's Hotel in Mayfair.

Man caught trying to steal jewels worth £190k from Claridge’s Hotel using smoke grenades and sledgehammer jailed

Daily Life In Richmond Hill

Toxic pesticide linked to cancer discovered in tampons at levels 40 times above legal limit for drinking water

Exclusive
Lord Hermer and Sir Keir Starmer

'Out of touch': Attorney General slammed for comparing ECHR doubters to Nazis

Exclusive
The UK’s Oldest Man, Donald Rose aged 110, has been given the ‘Freedom of The Borough’ in Derbyshire.

UK’s oldest man given ‘Freedom of The Borough’ for service in World War 2

Aerial view of Long Lartin High Security Prison near Evesham in Worcestershire.

Prison officer, 25, airlifted to hospital after being stabbed by inmate at high-security prison