Home > General > M&S says must accelerate change or die

M&S says must accelerate change or die

Written by Business World, on 23rd May 2018. Posted in General

article headline

Marks & Spencer said on Wednesday it urgently had to modernize or risk fading away as it reported a second straight decline in annual profit and booked a £321 million charge for a store closure program.

The 134-year-old M&S faces unrelenting competition from supermarkets, fashion chains like Zara, H&M and Primark, as well as online giant Amazon, while efforts to revitalize its business are being hampered by ongoing pressure on UK consumers' spending power.

M&S reset its strategy in November, two months after retail veteran Archie Norman joined as chairman, detailing a five-year program of store closures and relocations, and moves to make its misfiring food business more competitive.

On Tuesday M&S said it would close 100 UK stores by 2022, further accelerating the plan as it strives to make at least a third of sales online.

M&S said it made a pretax profit before one-off items of £580.9 million in the year to March 31.

That was ahead of analysts' average forecast of £573 million but down from £613.8 million made in 2016-17.

After taking account of adjusted items of £514.1 million, including the charge relating to store closures, pretax profit was £66.8 million, a 62% fall.

Turnover was broadly flat at £10.7 billion.

"We have to modernize our business to ensure we are competitive and reignite our culture. Accelerated change is the only option," said M&S.

Shares in M&S have fallen 26% over the last year and the firm is in danger of being booted out of the prestigious FTSE 100 index.

The stock closed Tuesday at 292 pence, valuing the business at £4.7 billion. (Reuters)

Source: www.businessworld.ie

More articles from General

image Description

Choosing the Right Time and Attendance System for Your Business in Ireland

Read more
image Description

The Benefits of Choosing a Payroll Bureau in Ireland with Online Payroll Software

Read more
image Description

Tips for Building a Successful Travel Business in Ireland

Read more
image Description

How to Improve Your Business Writing: Simple Tips That Work

Read more
image Description

Leveraging Digital Platform Integration is the Key to Driving Competition Among Businesses

Read more