Martha'S Latest Moves To Adjust The International Market: All Stores In Hongkong And Macao Are On Sale.

According to the world clothing and shoe net, Britain is the biggest on Tuesday.

Marks & Spencer Group PLC (MKS.L) Marsha general M&S M&S said in a statement that the company had completed Hongkong and Macao in December 30, 2017.

All 27 stores are for sale.

This is the latest move by Marsha general department to adjust the international market at the end of 2016, and the receiver is Al-Futtaim, the company's franchisee.

For the above pactions, Martha department did not disclose the exact amount, but said it would retain Hongkong's procurement business.

Al-Futtaim has been operating as a franchising partner of Martha's department. It operates Marsha general store in seven countries in the Middle East, Singapore and Malaysia. After completion of the paction, Al-Futtaim has 72 stores in Marsha general store.

Since 1988, Marsha has entered the Hongkong market, 20 years earlier than the mainland of China. Because Hongkong is more internationalized and used to be a British colony, the brand has more customer base in Hongkong.

At the end of 2016, the market adjusted, Marsha said that the company continued to make profits in the Hong Kong and Macao markets.

Paul Friston, international director of Martha, said the company is reinventing international business and improving profitability, and the strong logistics and professional capabilities of Al-Futtaim are the group's preferred partners in the Hong Kong and Macao markets.

In addition to closing entity stores in China and selling Hongkong stores, the company said it would retain China.

The channel is also being cleared now, and the company's Tmall Tmall flagship store also posted a shop notice.

In November 2016, the group announced that it had withdrawn from the 10 loss of international markets, closing 53 stores and laying off 2100 people.

These include the withdrawal from the Chinese market, closing all 10 stores, withdrawing from the French market and closing all 7 stores.

Other closed international markets include Belgium, Estonia, Hungary, Lithuania, Holland, Poland, Romania and Slovakia.

The top 10 market revenue in fiscal year 2016 is 171 million pounds, but the loss is as high as 45 million pounds.

In the 2017 fiscal year, the international market revenue of Martha's Department increased by 10.7% to 1 billion 108 million 300 thousand pounds, but it was mainly attributed to the depreciation of the pound. The fixed exchange rate had a 0.1% decline in revenue. During the period, the business loss was 31 million 500 thousand pounds, operating profit plunged 39.6% to 55 million 800 thousand pounds, of which the adjusted operating profit was 64 million 400 thousand pounds per pound, which was 15.4% 15.4% than that in 2016 fiscal year, but the operating profit mainly came from the operating profit of the franchised business in the pound, and the direct business operation loss was in the pound.

Martha said that the loss of international direct business mainly came from closing shop losses, and the existing stores still had 17 million 200 thousand operating profit, an increase of 12.4% over the same period last year.

However, the company said that in the 2017 fiscal year, the Hongkong market reduced revenue and reduced profits as a result of reduced discounts.

In the current fiscal year, withdrawing from the international market will still cost the group 135 million pounds in cash.

After withdrawing from the deficit market, the international business of Marsha's Department improved significantly. In the first half of fiscal year 2018, it recorded a pre tax profit of 60 million 300 thousand pounds, and its revenue increased by 2.3%. Excluding the withdrawal of market revenues, it increased 3.5% to 506 million pounds, of which 337 million was directly operated and 169 million pounds were concessionary.

Martha also adjusted the domestic market at the same time. When the three quarter was released in early November 2017, the group announced that it would speed up its closing.

Chief executive Steve Rowe warned that in tough markets, the price of food business needs to be competitive, so the group will slow down the speed of pure food business Simply Food.

Helen Weir, chief financial officer who has joined the group for less than three years and is about to leave, has said that it is unwise to open a new store in a big market.

Britain is now facing negotiations with Europe.

Over the past two quarters, Marsha's food business has recorded a 0.1% decline over sales. At the end of 2016, the group's domestic strategy adjustment wanted to close all business stores and focus on food business.

The new chairman of the group, Archie Norman, wants to speed up the reform of the group. He said in the three quarter earnings conference that the most famous department store in Britain has lagged behind users in the past 15 years. Now is the time to speed up reform.

He also said that today's competition is everywhere and faces challenges ahead.

He also praised Steve Rowe for its streamlining reforms in the past 18 months.

In November 17, 2017, two weeks after Martha's three quarter earnings report, the company's market value was surpassed for the first time by the British fashion ASOS PLC (ASC.L).

The London financial market uses the "Tesla moment" of high street market to define the scene of emerging online technology companies overcoming traditional retail giants.

According to data from Mark Photiades, the market value of Martha's store climbed to 16 billion 900 million in 1997.

The ASOS, which was launched in 2000, was only worth 14 million of the market when it was launched in October 2001, when the market value of Martha's stock was cut to 7 billion 800 million.

Although the annual sales scale of Marsha's department and ASOS is still 5 times the gap, the pre tax profit of the former fiscal year 176 million 400 thousand is only two times that of the latter 80 million.

And ASOS, as an online retailer, has a huge growth potential for the more than 20 year old fashion oriented young consumer group, but Martha is the representative of the decline of traditional high street retail.

So for Marsha, the first priority is to maintain its profitability rather than the global expansion plan of former CEO Marc Bolland.

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