Marks and Spencer is to close 11 of its in-stores cafes around the UK, and has conformed it will open one more store before Christmas.
M&S said that shutting the cafes is to create space for more popular products and no jobs will be cut as a result. The closures will affect fewer than 4% of the group’s 316 food shops.
An M&S spokesperson said: “As we look to modernise our food business and offer the best of M&S Food to more people, more often, we’re investing in our store estate to give our customers the widest possible product range.
“This includes opening brand-new coffee shops offering delicious food and barista-made fairtrade coffee, including at our brand-new Bristol Cabot Circus store.
“In some of our small Food stores, where customers want a greater range of M&S Food, our transformation also involves repurposing cafe space across 11 small food stores, out of over 300 M&S cafes, coffee shop and coffee to go locations.”
The shake-up is part of a wider £300 million investment and store rotation programme, which will significantly increase the number of M&S food halls.
It has been a tough year for M&S, after a hack cost it £324 million in lost sales – slightly more than its £300 million earlier estimate – but it was able to recover £100 million in its first half through an insurance payout.
Stuart Machin, chief executive of M&S, said of the issue: “The first half of this year was an extraordinary moment in time for M&S.
“However, the underlying strength of our business and robust financial foundations gave us the resilience to face into the challenge and deal with it.
“We are now getting back on track.”
He said the group also faced cost increases of more than £50 million from the national insurance hike in April over its first half, but that he expects profits to be “at least in line with last year” in the final six months of its financial year as it ramps up its cost-cutting target to £600 million.
“The retail sector is facing significant headwinds… but there is much within our control and accelerating our cost-reduction programme will help to mitigate this,” he added.
Food sales lifted 7.8% in its first half and were 2.8% higher by volume and with the impact of price increases stripped out.
Recommended reading:
- Millions of pensioners urged to check bank accounts for DWP 6-digit code this month
- M&S recall 'stop using this product immediately' due to 'risk of strangulation'
- HMRC Personal Allowance could double for pensioners as thousands back campaign
M&S launches ahead of Christmas
Three new fresh market-style foodhalls
• Southampton Street, Covent Garden – Wednesday 15th October
• Clapham Common – November
• Fulham Broadway – November
Three renewal launches
• Wimbledon – Monday 13th October
• Temple Fortune – Wednesday 15th October
• Chiswick – December
Share