The recipe for success: M&S expands food stores, with 5,000 new positions
Wednesday 23 October 2013
Marks and Spencer is set to expand its food-only store portfolio dramatically by opening 150 sites over the next three years and creating 5,000 new jobs.
The company will also open Simply Food stores across 10 travel hubs in Paris, after bosses revealed that its So Ouest store in the French capital generated more sales per square foot than any other international M&S.
The expansion means food sales are likely to continue growing at the expense of its other products, including clothing, with food already accounting for 55 per cent of sales in the UK.
General merchandise has struggled in recent years, with sales falling for the past nine quarters, leading to several senior management changes.
Its food division has grown for four years in a row and M&S controls 6 per cent of the chilled and fresh food market in the UK with 21 million customers, despite being best known as a clothes retailer. The chief executive, Marc Bolland, said: “Our food business has gone from strength to strength under our plans to transform M&S. We’ve delivered 15 quarters of like-for-like growth in the UK and have opened food stores in cities like Amsterdam and Paris.”
About 30 M&S-owned food-only stores will open next year, primarily in out-of-town locations, with Mr Bolland explaining that a key part of the current Simply Food recipe for success is access to a car park. A further 30 stores will be opened by franchisees in travel locations such as train stations and petrol stations.
The company hopes to move into more premium and speciality foods, with bosses believing its biggest rival, Waitrose, is focusing on basic products, leaving M&S able to corner the market.
There are also plans to introduce new lines of wheat and dairy-free ranges and baby foods, while £20m has been spent on improving quality. But Mr Bolland said M&S still has no plans to move into online shopping.
- 2 Mystery man who gave mum heart-warming note on train 'wanted to put a smile on her face'
- 5 Amal Clooney gives excellent answer to fashion question at European Court of Human Rights
King Salman: Just five days in, Saudi Arabia's new king has already overseen a beheading
Mystery man who gave mum heart-warming note on train 'wanted to put a smile on her face'
Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
Amal Clooney gives excellent answer to fashion question at European Court of Human Rights
Mafia's wall of silence broken: Victim of Cosa Nostra's extortion rackets in its Corleone heartland co-operates with authorities for the first time ever
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...
£16500 - £16640 per annum: Recruitment Genius: This fast growing Finance compa...