British retailer Marks & Spencer (M&S) (MKS.L) intends to open 20 new stores creating 3,400 jobs throughout Britain, The Times reported on Monday.
The newspaper said that the 138-year-old clothing and food group would open eight “full-line” stores in shopping centers such as the Bullring, Birmingham, and the Trafford Centre, Manchester, as well as retail parks and high streets.
It also will open 12 food halls, including in Stockport, Barnsley, and the North Ayrshire coastal town of Largs, Scotland.
Last November, the group proposed a target to reduce its full-line stores by 67 to 180 by 2028 while increasing its food-only stores by 104 to 420.
Chief Executive Stuart Machin informed the newspaper that the stock acquisition “fits into the leveling-up agenda, with the creation of jobs across the whole of the UK.”
The doors will bring new store buy to 480 million pounds ($586.94 million), the newspaper counted.
M&S reported healthy Christmas sales last week, with the need for turkeys and sparkling wine delivering its highest-ever share of the food demand and sequin-decorated party wear boosting its clothing sales.
Marks and Spencer, the leading retailer in the UK, is planning to open 20 new stores in Britain. In this step, the retailer expects to create 3,400 jobs throughout Britain. The openings will bring new store investment to 480 million pounds (US $ 587 million).
Last November, the group proposed a target to reduce its full-line stores by 67 to 180 by 2028 while increasing its food-only stores by 104 to 420.
As per a report in The Times, M&S will open eight ‘full-line’ stores in shopping centers such as the Bullring, Birmingham, and the Trafford Centre, Manchester, as well as in retail parks and high streets. It will also open 12 food halls in Stockport, Barnsley, and the North Ayrshire seaside town of Largs, Scotland.
Stuart Machin, Chief Executive of M&S, said that the investment in stores “fits into the leveling-up agenda, with the creation of jobs across the whole of the UK.”
It is worth mentioning here that the retailer reported strong Christmas sales last week, with sequin-decorated partywear boosting its clothing sales.
A government official said that the finance ministry has introduced the matter with the department of industrial policy and advertising (DIPP) and sought to know if M&S’ selling sub-brands conformed with the FDI policy.
The £9.9-billion international shows most of its sub-brands, such as Limited Collection, Autograph, Collezione, North Coast, Blue Harbour, Savile Row Inspired, Indigo Collection, and per unit, apart from its flagship M&S brand, in its stores across the country.
A DIPP official proved to receive the query from the finance ministry and said the policy on single-brand retail was clear. “The policy says all unknown labels should be registered and branded during manufacture. If this (selling subbrands) is the case, it amounts to multi-brand retail. Hence, we are not in favor of single-brand retailers selling sub-brands,” he said.
The current policy says outcomes to be sold should be of a ‘single brand’ only, implying that multiple brands owned by the same firm can neither be sold under one roof nor sold by the same entity. But the policy is quiet on subbrands and labels, and an M&S agent said no rules broke.
“Under our single-brand license in India, we only sell M&S products, including our subbrands, which are only available at M&S. Our sub-brands help consumers easily shop our wide choice of fashions…As we have not received a letter from DIPP, it would be inappropriate to comment further.”
M&S, which has 28 shops in the country, has said in its annual statement that it wants to establish its labels as standalone brands. “This year, we also launched our first sub-brand promotion to support the transformation of the likes of Autograph and Limited Group from ‘labels’ into distinctive, standalone brands,” the retailer said in its annual report.
Experts said the policy needs clarity as it needs to distinguish between a brand and a sub-brand. “As long as a company owns brands, it should not exist treated as multi-brand,” said Goldie Dhama, associate director, PwC.
India has made several changes to the single-brand retail policy after it settled in November 2011 to raise the FDI limit to 100%, from 51%, following objections from retailers.
