Marks & Spencer Announces Chinese Investment Plans
03 Mar 2015 --- British retail icon Marks & Spencer has announced its plans for the Chinese market, outlining store closures, strategic openings and additions to its online store. The news comes on the same say as its head of Asia, Bruce Findlay, is reported to have resigned.
The company, which entered China in Beijing in 2008, has announced its firm intent to enter key cities such as Beijing and Guangzhou from 2015/16, and that it will continue to invest in its existing flagship store portfolio with the complete modernisation of its flagship store on West Nanjing Road in Shanghai during the autumn.
As announced in April 2014, Marks & Spencer has reviewed the shape of its existing store portfolio to ensure its best aligned with its strategic growth plans. As a result, Marks & Spencer has taken the decision to close five of its supporting stores in the greater Shanghai region by August 2015. It has also reviewed its head office resource structure in line with growth plans.
Continuing its ‘bricks & clicks’ strategy, Marks & Spencer is leveraging E-commerce to strengthen brand awareness and reach across the country. Following the popularity of its online stores on China’s leading websites, which during the last quarter saw its sales on TMall.com increase by 200% on last year, Marks & Spencer launched a new dedicated kidswear store on TMall.com and a new clothing store on JD.com in January.
In line with its International strategy to focus on its flagship stores, Marks & Spencer will invest in modernising its stores in Hong Kong during 2015/16. It will also expand its Food store portfolio at convenient travel and city locations in Hong Kong during 2015/16. Since its update last year, Marks & Spencer has opened three Food standalone stores in Hong Kong during 2014/15, which have seen sales per square foot in line with its best performing Food stores in the UK.
Marks & Spencer will also grow its presence in Macau with the opening of a new 1,000 square metre store at The Venetian Mall in November 2015.
Patrick Bousquet-Chavanne, Marks & Spencer’s Executive Director, Marketing & International, said: “Last year, we reaffirmed our commitment to our Greater Chinese business and set out clear strategic plans. Today we can share more details of our continued investment across our priority markets of China, Hong Kong and Macau. This includes the modernisation of our flagship stores, entering new key cities, growing our Hong Kong Food store portfolio and expanding our reach across China through new sites on TMall.com and JD.com.”
M&S Changzhou Wanda Plaza, Changzhou and M&S Wuxi Jiangyin Wanda Plaza, Wuxi, will close on 9 March 2015. M&S Jiangqiao Wanda Plaza, Jiading, M&S Wenzhou, and M&S Changzhou InJoy City, Changzhou will close between March and August 2015. Employees of these stores and the supporting head office functions will be fully supported during this process.
