M&S sets new targets

Marks & Spencer, the well-known British department store with 17 retail outlets in India

announced that by 2014-15, it will have 50 outlets in the country. The plan is to open large format stores that are between 15,000 and 35,000 sq. ft. Marks and Spencer is projecting a growth of 25 to 30 per cent as it adds new product categories, sells more volumes and adds more stores. The roll out is based on India’s performance expectations.

“It all depends on momentum and right location”, said Nandini Sethuraman, Head of Marketing, Marks and Spencer Reliance India. Referring to the McKinsey report stating that India is poised to become the world’s fifth largest consumer market by 2025, she added that their contribution to international operations is small today, but this can change within a matter of few years and everyone realizes that.

Arvind Singhal, Chairman of Technopak Advisors, a retail consultancy firm feels, the scaling up of operations is overdue as the brand has been in India since 2001. It can actually open a100 stores in the next three years. The only restraining factor could be the supply chain. Currently, the brand locally sources up to 40 per cent, having set up a sourcing base in India in 2008 and is looking to address the food section, for which it is renowned overseas.

In India, Marks and Spencer is a joint venture between the UK-based Marks & Spencer Plc and the Mukesh Ambani controlled Reliance Industries subsidiary Reliance Retail. Marks and Spencer has expanded in India to sell apparels, personal toiletries, foot wear, swim wear and home accessories.