Marks & Spencer steps up global expansion plans after strong sales in Paris

 
Sales slump: Marks & Spencer
2 April 2014

Marks & Spencer is step up its expansion across Europe 13 years after it shut up shop across the Channel.

M&S yesterday unveiled plans for 250 more shops across the globe in the next three years, with a focus on food shops.

Strong sales of crumpets, tea cakes and digestive biscuits in Paris has given the embattled retailer confidence to expand.

Speaking in Paris, two and a half years after returning to the city, its chief executive Marc Bolland revealed details of 20 more food shops in Paris alongside a franchised food business.

Mr Bolland said: "Our strategy of becoming an international, multi-channel retailer is more relevant than ever before because of the strong growth potential of international markets."

The group is now planning stores in Amsterdam and Brussels, after recently opening a store in the Hague. It is also looking at possible flagship and food stores in Milan, Madrid and Barcelona.

Marc Bolland defended the group's decision to go back into Europe after closing down more than 10 years ago. He said: "Previously, regional stores didn't work. In the past we traded less food, there was no internet and we didn't have our flagship store strategy."

The group said its international stores will be profitable in three years, with Western European sales expected to reach £250m.

M&S is also looking to open 100 stores in India, where it is already established, over the next two years and is evaluating expanding with franchise or joint venture partners into China's regions. It already has 15 stores in Hong Kong and 15 in Shanghai.

Of the 250 new stores which were announced yesterday, 60 per cent of them will be franchised, and the company expects to increase international revenues by 25 per cent.

In three years it has expanded from 337 stores to 455 shops in 53 territories and nine local websites. Its online push has been led by Laura Wade-Gery, M&S's e-commerce executive director.

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