Marsha's Flagship Store In Champs Elysees, Paris, Will Further Cut Costs.

M&S Marsha general store Champs Elysees flagship store in Paris

Marks&Spencer Group PLC (MKS.L) Marsha for half a year Department store Chief executive Steve Rowe continues to carry out extensive and in-depth reform of the group. He will close the M&S flagship store in Champs Elysees, Paris, to further reduce costs.

It is reported that the decision was part of the latest strategy of international business announced by Marks&Spencer Group PLC in November 8th, when Steve Rowe announced half a year. M&S marks and Spencer Paris Champs Elysees flagship store is the decision product of former CEO Marc Bolland2010 after taking office. It opened at the end of 2011 with an area of 1400 square meters. Richard Hyman, an independent retail analyst in the UK, points out that the existence of the store is only to satisfy the self-esteem of Marks&Spencer Group PLC, but in fact it has huge operating costs. He pointed out that Steve Rowe is pragmatic and has indicated that there is no project that can not be touched. Steve Rowe has already declared its presence in the United Kingdom. market Substantial layoffs.

Marks&Spencer Group PLC has not mentioned much about the specific circumstances of various markets in international business. It is reported that in the first quarter of fiscal year 2017 as at the beginning of July, the group's international market sales increased by only 0.7%, while in the 2016 fiscal year ending in early April, sales increased by 1.3% compared with the same period last year, but net sales fell 0.3% to 1 billion 84 million 600 thousand euros compared with the same period last year. In the earnings report, the group disclosed only a rough disclosure of Western European market environment.

Marks&Spener GroupPLC, chief executive officer of Marsha general store, Steve Rowe

SteveRowe's decision to end Paris's department store business is in line with the expectations of the market for Marks&Spencer Group PLC to rectify its international business. Sanford C.Bernstein's research report released this month shows that 47% of retail investors want the group to reduce international business, and 20% think it should be completely withdrawn from the international market.

At present, the group has about 480 stores in 59 countries and regions in Europe, Asia and the Middle East. According to the official website of the brand, Marks&SpencerGroupPLC's French business is all around Paris and its suburbs, except for sale. Women's wear There are 4 M&S Marsha stores and 13 food stores outside the men's wear, children's wear, underwear and food Champs Elysees store. In view of the strong food business of the group, I believe these stores will continue to operate. The Holland Amsterdam shop plan was set aside by MarcBolland.

M&S Marsha's Paris Champs Elysees store is the starting point for the second French expansion of Marks&Spencer Group PLC. In 2001, CEO Luc Vandevelde decided to withdraw from the European market and shut down all 38 M&S Marsha general stores in one fell swoop. The French market accounted for 18, including the famous flagship store in Osman Avenue, Paris, which resulted in 1700 unemployed people in the country. Stuart Rose, the successor of Luc Vandevelde, described this as a "tragedy" strategy.

Although still the largest clothing retailer in the UK, the market share of M&S Marsha general store has been squeezed by Primark equal parity, Zara and H&M and other fast fashion brands and Next PLC (NXT.) equivalent competitors in recent years, and the competitiveness and attractiveness of overseas markets are also far behind, resulting in a continuous decline in overall performance for many years.

In order to cut costs and improve profitability, Marks&Spencer GroupPLC9 has just announced that it will reduce 525 posts in the group headquarters office in London, while the logistics and IT jobs mainly in central London will also reduce 400 jobs. Besides, overtime wages for non routine time sales clerks will also drop. The Group expects a number of measures to save 1% of the annual cost of local businesses, but will cost 15 million pounds.

Steve Rowe said that the group must become more streamlined and more efficient in order to complete the business revival and growth plan.