M&S picks up pace of store openings

Marks & Spencer is accelerating its store expansion, having secured 10 new locations in recent weeks. In interim results, the company said it plans to open 180 full-line stores and 420 food stores by 2028. Two new full-line stores opened in Dundee and Washington Galleries during the half-year, with their clothing and home sales exceeding the company’s expectations by 13%. Flagship stores in Bristol and Bath are set to open in FY 2025 and a trial clothing-only store format will open in Battersea this December. The six full-line stores opened in FY 2024 are expected to deliver annualised returns of £251m. The company reported a robust first-half performance for the 26 weeks ended 28 September, with profit before tax rising by 17.2% to £407.8m. Food sales went up by 8.1%, delivering a profit of £213.1m, up from £158.4m in 2023. Clothing and home sales increased by 4.7%, with profit reaching £242.2m compared to £240.9m in 2023. During the period, two foodhalls were opened, along with three new stand-alone stores and four lease renewals. Stuart Machin, chief executive, said: “Executing our strategy to ‘Reshape M&S for Growth’ has again delivered an increase in customers, sales value and volume, market share, profit and returns. Both food and clothing have now delivered market share growth for four consecutive years. “The business remains in robust financial health. We have improved our return on capital employed to 15% and further strengthened our balance sheet, giving us the capacity and flexibility to invest for growth and deliver structural cost reduction, demonstrating our ability to deliver value for shareholders.” Photo by NEIL HALL/EPA-EFE/Shutterstock