Marks & Spencer invests in retail real estate
Marks & Spencer, Britain’s largest clothing manufacturer, has invested $587 million in retail real estate. The plan is to open 20 stores under the M&S brand between fiscal 2023 and 2024. In addition to manufacturing clothing, the company sells food.
The retailer’s allocated investments will create about 3,400 jobs in the UK. In addition, the company is implementing a strategy to modernize its stores, which was adopted in 2022. Initially, the plan was for 5 years, but then M&S decided to speed up the process and reduced the period to 3 years.
According to representatives of the brand, stores are a fundamental part of business and help to maintain a competitive advantage in the market. This is why special attention is paid to trade outlets in the structure of the company. According to the adopted strategy, the company intends to analyze each store by location, area, space, and other characteristics. Thus, Marks & Spencer plans to choose the most convenient for customers and profitable for business facilities.
As part of the modernization, the number of stores that offer the full range of the brand will be reduced by 67 units. As a result, 180 stores will remain, which provide high quality and bring the company maximum profit. At the same time, Marks & Spencer will increase the number of stores that offer only food products – they will become 420 instead of 104. The company operates a total of 885 stores worldwide and 600 of them are in the UK.
Marks & Spencer was founded in 1884 in Leeds by two merchants, Michael Marks, and Thomas Spencer. Initially, the company sold goods from local producers under the brand St Michael, and after starting its own production under the brand Marks & Spencer. In 1934 the company established a laboratory, which improved the types of fabrics made of natural materials, thereby improving the quality of products. Thanks to these developments in the M&S stores it was possible to buy clothes made of cotton or wool, which stood up well to washing and were not deformed during active wear.
The company’s products are hugely popular not only because of their quality but also because of its loyalty policy. Until 2005, the buyer could return unused items with a refund, regardless of when the purchase was made. Later, the rules changed and the return period was 90 days.
The philosophy of the brand is a special attitude to every customer, and the staff is friendly and ready to help with the choice of things. For its employees, Marks & Spencer also provides excellent working conditions and a social package, including free medical and hairdressing services, as well as other bonuses.