Wednesday, November 9, 2016

Marks & Spencer closes all stores in Poland – Gazeta Wyborcza

Founded in 1884. the company Marks & Spencer has more than 930 stores in the UK and 466 stores in international markets. Outside of the UK is present in 58 markets. In Poland there are 11 shops of this brand: five in Warsaw, two in Wroclaw and one in Gdynia, Koszalin, Lodz and Poznan. In most stores there are departments with food products – grocery store Marks & Spencer, the company also sells equipment for Pets.

the company reported today in a special report, all the stores in Poland will be closed. The decision was made after undertaking a comprehensive review of 466 foreign stores, the purpose of which was to present a clear picture of the activities undertaken and the factors affecting the result.

Russia is no exception. Marks & Spencer announced plans to close all 53 stores in nine other markets, including ten in China and seven in France, and also in Estonia, Hungary, Lithuania, Slovakia, Romania, the Netherlands and Belgium.

Stores Marks & Spencer cause damage

As indicated in the report, the international activities of the company can be divided into two parts: its own activity, which in many markets brings losses, and cost effective franczyzową, which last year generated a profit of $ 87 million pounds.

last year’s activities of your company in ten markets generating 45 million pounds loss on 171 million pounds of income, and some markets brought losses over the past five years. The report says that was due, in particular, the fragmentation of its own stores and the insufficient scale of activity.

If the result of the consultation, Marks & Spencer decides to implement its plan, the Group will carry 150-200 million pounds in expenses, mostly in cash, mainly related to real estate and staff layoffs.

Shops in Poland? “Not support”

regional Director for Europe, China and India in marks & Spencer Jonathan Glenister quoted in the message said that a detailed review of the opportunities on the Russian market showed that activity in Poland is untenable. Today begins consultations on the intention of the closure of stores with its 351 workers in Poland.

- We are aware of the impact of a proposed in Poland changes on our employees and you want to get their feedback about our proposal, said Glenister.

at the same time marks &Spencer has promised to comply fully with all requirements of labor legislation in Poland that will include “cooperation with the European Council Plant and staff before the start of the consultation process”. In total, the company intends to hold consultations with close to 2100 employees on international markets.

Greater emphasis on franczyzę

the Company announced that in the future, Marks & Spencer intends to operate on a smaller number of markets in which companies operate, which is fully owned by the company, but with great emphasis on the creation of a joint venture and franchise network.

marks & Spencer has 268 stores and franchises in 34 markets, as well as a joint venture in Greece and India. British retail chain has told that together with its partners, will use their scale of activities and infrastructure and knowledge of local conditions.

“Marks & Spencer will also continue to develop activities franczyzową in the field of food products in France, where there is a demand for high quality, innovative products, available in convenient locations. Will continue to operate the company owned by the Group in Ireland, Hong Kong and the Czech Republic which, thanks to its strong brand recognition, well-known Department stores and loyal customers still make a profit”, it says. The company also conducts e-Commerce on 21 markets.

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