Marks & Spencer to close 67 stores in bid to cut costs

British retailer Marks & Spencer will close 67 stores over the next five years as it aims to cut operational costs.

In a report it also said it will attempt to fast-track the closures within three years, if possible.

The closures equate to cutting 25 percent of Marks & Spencer’s full-line store portfolio in order to save 300 million pounds and reduce a 100 million pound energy bill, equating to a total reduction of 400 million pounds in overheads.

In a presentation to investors, Marks & Spencer chief executive Stuart Machin said the retailer will operate 180 'full-line' shops, down from 247 stores, which will sell clothing, homeware and food by early 2028.

Marks & Spencer outlines store closure plan

The high street giant has not yet revealed which stores will close and which will remain open.

The retailer said it sees profitable growth in clothing and homeware, and is capable of margins over 10 percent, versus 4 percent in food.

The company also said it would focus on the most relevant categories for consumers, who must also deal with rising costs.

Marks & Spencer said it will tackle inefficiencies in its supply chain, to maximise flows in line with demand for its clothing and homeware categories.

It further aims to slim down and automate its UK distribution centre network and leverage stores for returns management in order to improve speed back to inventory.