M&S to Close More Than 100 Stores Amid Online Push

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These adjusted results are said to be consistent with how M&S's business performance is measured internally as it undergoes its transformation plan and results for FY18 include 321.1 million pounds stemming from its United Kingdom store estate closure programme. "Accelerated change is the only option", said M&S.

M&S, one of the best known names in British retail, said it made a pretax profit before one-off items of £580.9m in the year to March 31.

Statutory pre-tax profit fell 62% to £66.8m and excluded £514.1m of so-called adjusting items including the £321.1m cost of scrapping stores.

That compared with profit after taxation of 117.1 million pounds a year earlier.

At M&S's clothing business, which has failed to keep up with trends for many years, revenue fell 1.4% to £3.74bn.

Sacha Berendji-the retail, operations and property director at M&S said that that they are making nice advancement with their plans of restructuring their store chains for making them more relevant to the customers and to assist the online growth plans.

Currently, around 18 percent of M&S' clothing and home sales are made online.

M&S profits plunge 62pc amid sweeping store closure plans
M&S says it must accelerate change or fade away

On Wednesday, M&S is expected to report further under performance in its food arm, with analysts projecting a drop in sales, but an improved bottom line.

"These, together with a challenging United Kingdom consumer market, mean that we have to modernise our business to ensure we are competitive and reignite our culture", it said.

"Changes in the high street and migration online mean that we have to be decisive with our store estate, renewing and closing stores more quickly".

But chief executive Steve Rowe, who took over in 2016, used the results to promise shareholders its transformation plan would tackle the "basics" under new leadership teams in its core food, clothing and home divisions.

The high-street chain has expanded its closure plans as it aims to shift at least a third of sales online, the group announced in a statement.

"There are a number of structural issues to address and we are taking steps towards fixing these".

"This is vital as we start to leverage the strength of the M&S brand and values across a family of businesses to deliver sustainable, profitable growth in three to five years".

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