2nd Apr 2014 08:08
LONDON (Alliance News) - British retailer Marks and Spencer Group PLC is planning to open 250 new stores outside the UK over the next three years, as part of its global expansion plans.
M&S, which held an investor day in Paris on Tuesday, said 60% of the new stores will be franchised.
It said that it will be entering new territories with existing partners, and expects the global expansion to increase revenues by 25% and profits by 40% over the next three years.
In its presentation Tuesday, M&S said it currently operates a total of 455 stores in 53 territories outside the UK, as well as nine local websites. Inside the UK, M&S has more than 760 stores.
The retailer's future roll out plans include a franchise roll-out of fresh food in Europe, lingerie and beauty outlets, as well as expansion in China, India, the Middle East and Russia.
M&S said it is accelerating growth in the French capital with franchise partners, with plans for 20 food-only stores in Paris over the next three years, as well as flagship stores and full-line stores, which the retailer hopes will echo the success of its food business in the UK, which continues to outperform its lagging general merchandise arm.
Shore Capital analyst Clive Black attended the M&S investor day in Paris and commented Wednesday that beyond Europe, and largely working with partners, M&S is targeting 100 stores in India by 2016, 30 small lingerie and beauty outlets in Arabia and India, plus expand in China, Middle East and Russia.
"In total around 25% sales growth and 40% profit growth is anticipated over the next three years from 250 new outlets from M&S International, around 60% of which will be franchise. In due course, with the platform developed, an international online business is aspired to as well," Black said.
The British retailer launched its long-awaited new website platform back in February, a move it hopes will help turn around its ailing clothes and general merchandise business and catch it up with rivals who were quicker at taking advantage of soaring online sales.
Marks & Spencer is set to provide a trading update of its fourth quarter next week on April 10.
The retailer's shares were up 1.1% or 5.10 pence Wednesday morning, at 464.90 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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