The disintegration of the traditional British retail landscape has slammed another much-loved store.
The favorite Marks & Spencer chain — better known as M&S — announced on Tuesday which wants to close 100 UK locations, or about 10% of its stores, as which encourages customers to shop online.
The British chain said the hundreds of affected staff could be offered jobs in different shops.
M&S can be well known for its grocery stores offering a range of M&S-branded items in addition to ready-made meals. which also has stores which boast fashion in addition to homeware products.
Roughly 60% of M&S sales come coming from food in addition to the rest comes coming from fashion in addition to homeware.
M&S expects to complete the closures by 2022, in addition to the company can be also scaling back brand new openings.
Sacha Berendji, a top retail director at M&S said This specific announcement was part of a “wider several-year transformation plan to make M&S special again.”
“Closing stores isn’t easy although which can be vital for the future of M&S,” said Berendji in a written statement. “Where we have closed stores, we are seeing an encouraging number of customers moving to nearby stores in addition to enjoying shopping with us in a better environment.”
Related: H&M can’t become a digital powerhouse overnight
which’s well known which British customers are increasingly gravitating towards online shopping, which has left traditional retailers scrambling to adapt in addition to compete with tech giants like Amazon (. This specific same type of story can be also playing out inside United States in addition to different developed European markets. )
Earlier This specific year, Toys “R” Us was wound down inside UK, laying off thousands of staff. Electronics chain Maplin also collapsed, in addition to administrator PwC can be today inside midst of trying to find a buyer.
On Tuesday, M&S said which had a target of producing one-third of its sales online.
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Shares in M&S declined by as much as 3% on Tuesday following the announcement, producing which the worst performing stock of the day on London’s benchmark FTSE 100 index.
Fiona Cincotta, a senior market analyst at City Index notes which a 26% slide in M&S stock over the past 12 months could make which a leading contender to be cut coming from the FTSE 100 index altogether.
different analysts are also downbeat about the outlook for the company.
“Given which the firm can be clearly looking to cut costs further there could be more weakness ahead,” warned David Cheetham, chief market analyst at the online trading platform, XTB.
The company makes the vast majority of its sales inside UK, although also has about 450 international locations. Sales inside last financial year totalled £10.6 billion ($14.2 billion), down slightly coming from the previous year.
M&S can be set to Discharge its newest annual financial results on Wednesday.
sy88pgw (London) First published May 22, 2018: 10:17 AM ET