Marks & Spencer is closing 60 clothing and home shops over the next five years in the UK, and more than a quarter of its international estate, in a bid to cut costs.
New chief executive Steve Rowe is also planning to open 200 Simply Food shops open as it struggles with disappointing clothes sales.
The retailer reported falling sales and profits in the six months to the end of September.
Clothing sales in existing stores fell by 5.9%, while its food sales only fell by 0.9%.
Pre-tax profit dropped 88% to £25.1m, from £216m in the same period a year ago, this was partly due to higher pension costs.
Rowe’s cost-cutting plans include shutting 53 international shops, including all 10 it has in China, half of its shops in France, and all shops in Belgium, Estonia, Hungary, Lithuania, the Netherlands, Poland, Romania and Slovakia.
Rowe said: “We have now completed a forensic review of our estate both in the UK and in our international markets. Over the next five years, we will transform our UK estate with circa 60 fewer clothing & home stores, whilst continuing to increase the number of our Simply Food stores. In the future, we will have more inspiring stores in places where customers want to shop that complement our growing digital offer.
“Internationally, we propose to cease trading in 10 loss-making markets, but intend to continue to develop our presence through our strong franchise partners. These are tough decisions, but vital to building a future M&S that is simpler, more relevant, multi-channel and focused on delivering sustainable returns.”
Edward Cooke, chief executive at Revo, said: “M&S’s strategy reflects changing consumer behaviour, resulting in an increased focus on convenience stores, price competition, a strong online presence and excellent customer service – rather than business growth through an ever-increasing property footprint.
“Although M&S continues to look actively for Simply Food expansion opportunities, its fashion-led branches in so-called ‘weaker’ high streets are expected to be the focus of store closures and this will be of concern in those places, given the role retail plays in supporting successful local economies and communities.
“Further, M&S and other retailers continue to be subject to a business rates regime which hampers property investment and occupation. Therefore, we continue to urge the government to urgently reduce the tax liabilities arising from this punitive tax and address the opaque appeals system.”
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