Monday, December 6News That Matters

M&S swings to £201m loss after lockdowns crush store sales

Marks and Spencer is stepping up plans to shrink its store network after it plunged to a £201m loss following a year of lockdowns.

The retailer, which currently has just over 250 “full line” sites selling clothing and home as well as food ranges, said it was aiming to cut this number to around 180.

Some stores will be switched to “food only” and others moved to new locations while around 30 will close, Marks and Spencer said.

The retailer’s full-year loss for the year to 27 March compares to a profit of £67m a year before.

It said clothing and home sales were down by 31% – with contrasting fortunes for stores, where sales were down by 56%, and online, where climbed by 54%.

Food revenues grew by 1.3% even before accounting for the contribution of the online delivery tie-up with Ocado, which now sells M&S products and delivered a £78m boost to its bottom line.