British retailer Marks & Spencer (M&S) could trim its operations not only in its domestic market Britain but also close down stores abroad, especially in France and China. The proposed move is prompted by a drop in its clothing business. The retailer has 468 international stores and 914 in Britain.
M&S chief executive Steve Rowe is likely to announce next Tuesday plans to "rationalise international operations" and utilisation of those stores in Britain that are likely to be shut, Reuters reported.
The agency cited analysts to say that the retailer's stores in Western Europe, including France, and China are likely to be closed down as part of the exercise to trim expansion undertaken by Rowe's predecessor.
The company's website says that it has 82,904 employees and had a turnover of £10.4 billion in the financial year ended March 26 2016. International revenues contributed about £1.1 billion. In the home market, £5.4 billion came from food business while clothing and home segment accounted for £3.9 billion.
The retailer is expected to report a 3.9 percent drop in Q2 (ending October 1) sales in its clothing and homeware business YoY, Reuters said, citing forecast by eight analysts.
The Telegraph reported that M&S has been hit by online sales as well as lukewarm response to its womenswear collection. The retailer's pre-tax profits are likely to come at £216 million.
M&S entered India in 2001 and formed a joint venture with Reliance Retail called Marks & Spencer Reliance India in April 2008, around the time it opened its first store in China. The retailer has 58 stores currently in India.