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Marks & Spencer is closing the shops for the first time in 30 years

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Marks & Spencer is closing the shops for the first time in 30 years

Marks & Spencer is closing the shops for the first time in 30 years
November 08
09:00 2016

The press release issued by the UK’s largest manufacturer of clothing and retailer Marks & Spencer Group indicates the unprecedented decline in the company’s indices. Thus, the net profit for 2016 (before October 1) has amounted to approximately 17 million pounds that means a fall by 90%. Before the tax payment the profit has decreased by 18.6% and amounted to 231 million pounds in the first fiscal half-year.

Due to the depressed financial results the company’s management decided to close 30 stores in the UK and 53 trading houses abroad. More than two thousand employees will leave their working places. M & S will completely go from Slovakia, Hungary, Poland, France and Romania. Also, all the stores will be closed in Estonia, Belgium and the Netherlands. The company has decided to discontinue development in the Chinese market, completely eliminating their presence there.

However, M & S management is planning to expand the chain of food supermarkets Simply Food. The market has reacted moderately, on Tuesday the fall of the company’s shares was equal to 2%.

As a reminder, Marks & Spencer takes the 43rd place in the list of the world’s largest retailers. Founded in 1884, the company was the first among the British retailers to break the profit mark of 1 billion pounds (in 1998).

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1 Comment

  1. John Miller
    John Miller November 28, 16:11

    It was obvious that over the years all these shops were unprofitable. Now M & S begins negotiations and is seeking the way to create more profitable business that fits the customers in the age of virtual shopping. Maybe, thanks to the opening of grocery stores, M & S will appear in the large number of British cities that will help to save jobs for thousands of people.

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