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.
- 1 Scottish referendum: So how about the English now being given a chance to split from England?
- 2 Friends 20th anniversary: Alison Jackson photographs reunited cast
- 3 Friends 20th anniversary: The highs and lows of the cast's careers since 2004
- 4 The response to my Pizza Express review has been overwhelming, and taught me a lot about journalism
- 5 Free U2 album: How the most generous giveaway in music history turned into a PR disaster
Scottish independence: Despite defeat history may still point to Alex Salmond as the victor
Scottish independence referendum: Frankie Boyle reacts to nation's 'No' vote - 'To be fair, I've always hated Scotland'
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Scottish referendum: Police struggle to control Unionist rally in Glasgow's George Square
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: The Queen breaks silence on referendum debate – as think tank warns of £14bn black hole if Scotland votes Yes
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...