Marks & Spencer announces it will permanently close 10 stores this year across Britain 

Marks & Spencer has announced plans to close 20 stores before the end of this year, 10 of which will be relocated elsewhere in cities.

The high street staple has yet to reveal the full listing showing which of its stores are slated for permanent closure.

Of the ten planned for local relocation, five will be new flagship department stores in Liverpool, Leeds, Manchester, Birmingham and Thurrock.

The chain also plans to open eight full-range stores and ten food stores.

The move follows the closure of several stores in recent months, including the East Kilbride store on February 25 and the Fenchurch Street store in central London just weeks later.

The chain also plans to open eight full-line stores and ten food stores

The Meadowbank Retail Park in Edinburgh closed last month, as did the Linthorpe Road store in Middlesborough.

Chief Executive Stuart Machin said: ‘A year on, our strategy to reshape M&S for growth has led to continued trading momentum, with both companies continuing to increase sales and market share.

“Our Food and Clothing & Home businesses invested in value to protect customers from the full force of inflation, which, while impacting margin, was the right thing to do, as serving our customers well is the only way to achieve something for our shareholders.’

Marks & Spencer has shown an increase in sales despite pressure on customer finances, but saw profits fall over the past year due to higher costs.

Earnings nevertheless came in better than expected, sending the group’s shares soaring as much as 13% in early trading to their highest level in more than a year.

The retailer said sales grew for the year to April in both its apparel and homeware and food divisions.

Bosses at M&S ​​hailed the performance as proof of progress on the retailer’s turnaround plan, which has seen dozens of its larger stores closed due to an overhaul of its store portfolio.

It said better ranges of clothing and refurbished stores played an important role in the improvement in trade.

Total revenue for the company was up 9.6% to £11.9bn compared to the previous year.

Marks & Spencer said improved clothing range and refurbished stores played a major role in the improvement in trade

Spearheading transformation: Stuart Machin, the CEO of M&S

Clothing and home sales rose 11.5% to £3.72 billion following a significant surge in retail sales, with shoppers returning to the high streets in droves following the impact of Covid-19.

Meanwhile, sales in the food business grew by 8.7% to £7.22 billion, compared to the previous year.

M&S also told shareholders it has seen a “good start” to the new fiscal year despite an “uncertain” outlook for consumer spending.

It comes amid continued high inflation for UK households.

New figures from the Office for National Statistics on Wednesday showed food CPI (Consumer Prices Index) inflation hit 19.3% last month, although this reflected a slight decline from March data.

Mr. Machin said the company expects recent price increases to “tell” but stressed that there are still inflationary pressures in the supply chain due to higher labor costs and certain commodity price increases.

He said: ‘Yes, we expect things to get a little better and we have already been able to lower the price of some products, such as milk.

‘As soon as the costs of products fall, we will pass this on to the customer.

“We have some products that are peaking, but for other things like eggs they are still significantly higher than a year ago.

“I’m sure things will slow down and get a little better. There is still uncertainty, but hopefully we will see more of that in the autumn.’

The London-listed company posted profit before tax and adjustments of £482m for the year, down from £522.9m last year.

The retailer said the figure, which was higher than analysts’ forecasts, was lower in part due to the fall of the government’s corporate interest rate cut during the pandemic era.

It also highlighted continued cost inflation for both the apparel and food divisions.

The company said it also expects to face more than £50 million in energy cost increases and more than £100 million in staff salaries over the coming year, but emphasized plans to offset this through its cost-cutting plan designed to save a further £150 million to secure. a year.

Mr. Machin added: ‘Our strategy to reshape M&S for growth has led to continued trading momentum after a year, with both companies continuing to grow both revenue and market share.

“Our Food and Clothing & Home businesses invested in value to protect customers from the full force of inflation, which, while impacting margin, was the right thing to do, as serving our customers well is the only way to achieve something for our shareholders.’