The closures are a part of a bid to create a “simpler business”, according to CEO Steve Rowe who was brought on board earlier this year, reports WWD. The 53 overseas stores in question include 10 in China, seven in France (the Champs-Élysées flagship is also expected to be on the list) and all of its stores in Belgium, the Netherlands, Poland, Estonia, Hungary, Lithuania, Romania and Slovakia.
The news comes as the retailer announced a 91 per cent decline in first-quarter profits. The cost of the closures is estimated to be £150 to £200 million, but in the long run it is expected to save the company £45 million in annual losses. The company revealed, however, that as a part of its five-year plan, the number of stores in total would actually increase, as the company plans to focus its attention on food and roll out 200 more M&S Food shops around the UK.
Rowe, who confirmed that a consultation period would begin with 2,100 employees in the overseas locations, remained positive about the move, saying, “These are tough decisions, but vital to building a future M&S that is simpler, more relevant, multi-channel and focused on delivering sustainable returns.”
He also reassured the press that despite a weaker pound following Brexit, he does not have plans to increase pricing, instead the company will absorb the cost.
"We've obviously got currency pressures that have come onto us recently but we intend to mitigate those through better sourcing, by better volumes with our manufacturers and our intention is that we won't have to pass those price rises onto the consumer in the New Year," he told the BBC.
The news comes as the retailer announced a 91 per cent decline in first-quarter profits. The cost of the closures is estimated to be £150 to £200 million, but in the long run it is expected to save the company £45 million in annual losses. The company revealed, however, that as a part of its five-year plan, the number of stores in total would actually increase, as the company plans to focus its attention on food and roll out 200 more M&S Food shops around the UK.
Rowe, who confirmed that a consultation period would begin with 2,100 employees in the overseas locations, remained positive about the move, saying, “These are tough decisions, but vital to building a future M&S that is simpler, more relevant, multi-channel and focused on delivering sustainable returns.”
He also reassured the press that despite a weaker pound following Brexit, he does not have plans to increase pricing, instead the company will absorb the cost.
"We've obviously got currency pressures that have come onto us recently but we intend to mitigate those through better sourcing, by better volumes with our manufacturers and our intention is that we won't have to pass those price rises onto the consumer in the New Year," he told the BBC.
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