Marks & Spencer Stores Closures 2019: More Than 100 Locations Set To Close

Marks & Spencer (MKS.L) has announced it will close approximately 100 stores as part of an effort to boost sales performance. The news of the closures comes as Marks & Spencer looks to move its clothing sales online and away from brick-and-mortar locations.

The closures will also include 25 of its Simply Food convenience stores and 85 of full Marks & Spencer stores. The retailer closed 35 stores last year and plans to open another 48 stores within the year.

According to Steve Rowe, Marks & Spencer chief executive, the closures represent a 25 percent reduction in its selling footprint that was previously devoted to clothing and home product lines. Rowe expects the total number of closures to be around “110ish,” The Guardian reported.

“We are deep into the first phase of our transformation programme and continue to make good progress restoring the basics and fixing many of the legacy issues we face,” Rowe said. M&S is changing faster than at any time in my career - substantial changes across the business to our processes, ranges and operations and this has constrained this year's performance, particularly in Clothing & Home.

"However, we remain on track with our transformation and are now well on the road to making M&S special again. Whilst there are green shoots, we have not been consistent in our delivery in a number of areas of the business,” Rowe added.

Beyond the store closures, Marks & Spencer will also undergo an overhaul of its clothing and food offerings in addition to an online initiative that is part of its partnership with Ocado, which the company purchased half of in March.

Marks & Spencer saw a 1.3 percent dip in like-for-like clothing sales in the first three months of 2019 while food hall sales were down 1.5 percent over the same timeframe. Total company revenue decreased by 3 percent and profit before tax fell 9.9 percent.

Shares of Marks & Spencer stock were down 7.41 percent as of 11:27 a.m. ET on Wednesday.