Marks& spencer sells Hong Kong stores when it exits the market
Marks& spencer is selling stores in Hong Kong and macau as retailers conduct extensive overhauls.
The clothing and food chain has sold one of its main non-uk businesses to al-futtaim, a longtime franchise partner in the region, without giving a specific amount. M&S (Marks&Spencer) is currently selling 27 stores, keeping the name of M&S under the franchise arrangement, which is located in dubai’s Al Futtaim – brand in Asia and the Middle East which has 72 stores.
The move comes less than two months after marks & spencer’s business in Hong Kong has been restructured without repeating itself. It announced the closure of 30 UK stores and converted 45 stores to food only, as it cut the size of its clothing line.
Chief executive Steve’s turnaround plan includes (Steve Rowe) launched in China, such as France and Belgium market closed 53 overseas network loss, and since 1988, owned by Hong Kong companies operating M&S store was among them.
Paul Friston, international director of Marks&Spencer, said: “we have dramatically changed our international business, which has increased profitability and enabled us to grow. As one of the world’s leading retail operators, al-futtaim has strong logistics capabilities and local expertise, and is an ideal partner for us to develop and develop our business in Hong Kong and macau. ”
Rowe’s strategy review showed that because non-uk operations were too small, companies knew little about customers in some markets, so overseas markets retreated. Last year, retailers lost 43 million pounds in foreign business.
But in November 2006, marks and spencer announced plans to close the remaining ten stores in mainland China and close five last year.
After the al-futtaim deal, the last remaining M&S stores outside the UK are located in Ireland and the Czech republic.
Whitman Howard, a Research firm (Whitman Howard Research) retail analyst Tony bush leite (Tony Shiret), says m&s to franchise rather than proprietary stores in Hong Kong, with its new chairman Archie Norman (Archie Norman) attention to revive the British business are inseparable.
In September of last year to join the marks and spencer, was highly in the career of asda and ITV Norman, has accused the “drift” chain stores in more than 15 years, and promising to guide the change of M&S.
“Even if they put the ball out of the field in Hong Kong, it won’t have any impact on the main business. Shiret says there are many other things they need to reposition, reposition the food business, continue to solve the garment problem, and adjust the size of the real estate.
The M&S will reveal how it emerged during key Christmas trading hours next week. The chain in the aspect of sales is expected to face tough times, because in November and December, many competitors out of the red banner, as they try to clean up after the warm autumn knitwear and coat. Mr Lo said he was determined to sell more at full price.
Last year, Rowe’s strategy to reduce promotions and low-cost investments paid off, helping the chain launch its first increase in six years on Christmas day.
While inflation will boost sales this year, analysts at Jefferies don’t expect a positive impact on holiday trading. They forecast a 3 per cent drop in sales of m&s clothing and household goods and a 1 per cent drop in food.