Marks & Spencer has confirmed the location of five of its stores earmarked for closure in China as it updates it Asian growth plans.
M&S said it had taken the decision to close five of its supporting stores in the greater Shanghai region by August 2015 and was also reviewing its head office structure. The group is also set to expand its food offering in Hong Kong.
It comes as the head of the retailer’s operations in Asia has taken up another role at fashion brand Diesel. Bruce Findlay, regional director for Asia, who took control in the region in September 2013, is leaving M&S in two months, the company confirmed, with an update on his succession to be announced in due course.
In today’s Chinese growth plan update, M&S added it had a “firm intent” to enter key cities such as Beijing and Guangzhou from 2015-16. It will continue to invest in its existing flagship store portfolio, with the modernisation of its outlet on West Nanjing Road in Shanghai during the autumn.
M&S will also continue its ‘bricks & clicks’ strategy by using e-commerce to strengthen brand awareness and its reach across the country. The company has launched a dedicated kidswear store on Chinese website TMall.com and a new clothing store on JD.com.
“Last year, we reaffirmed our commitment to our Greater Chinese business and set out clear strategic plans,” said Patrick Bousquet-Chavanne, executive director for marketing and international.
“Today we can share more details of our continued investment across our priority markets of China, Hong Kong and Macau. This includes the modernisation of our flagship stores, entering new key cities, growing our Hong Kong Food store portfolio and expanding our reach across China through new sites on TMall.com and JD.com.”
In Hong Kong, M&S is planning to invest in modernising its stores and expand its food store portfolio at travel and city locations. The retailer said it had opened three food standalone stores in Hong Kong during 2014-15, with sales per sq ft in line with its best performing food stores in the UK.
M&S opened its first food store in Wanchai in 2010, and it now carries about 2,000 SKUs across chilled, ambient, frozen, wines and coffee to go.
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