Marks & Spencer plans to close 100 of its stores by the end of 2022 could release 3.8m sq ft of empty retail space.
The store closures, revealed this morning, come after the company announced a review of its store portfolio in November 2016, resulting in 21 outlets closing.
Fourteen clothing and home range store closures were confirmed, adding to the 21 already closed. A review is taking place to identify 65 further store closures.
Analysis by Radius Data Exchange has found the 100 M&S store closures are likely to release 3.8m sq ft of empty space by the end of 2022, adding to the circa 7.1m sq ft of retail space has been put at risk of closure so far in 2018.
M&S appears to be continuing with its long-term vision of modernising existing stores while cutting portfolio costs and reducing its overall physical footprint.
Retailers are currently facing a challenging environment on the high street. So far in 2018 many of the UKs favourite retail brands have been squeezed into consolidations, closures and CVAs.
Modernisation of physical portfolios, which are overstretched amongst the larger retailers, is seemingly necessary to survive.
A turbulent economic period for consumers and business’, combined with an increase in online spend (up to its peak of 19.7% of all retail spend in November 2017) has created perilous trading conditions for many.
Recently department stores Debenhams announced it is expecting to right size and downsize around 50 stores in its portfolio, and House of Fraser are looking to possibly shed over a half of their stores in the UK. We have already seen the proposed merger between Sainsbury’s and Asda this year as well, which will certainly lead to rationalisation.
Huge property estates are now becoming a hindrance and burden to retailers, property costs coming only behind remuneration for staff.
With 1,035 stores trading at present, the 100 it is looking to cut loose represents 10%.
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