M&S profits plunge 62pc amid sweeping store closure plans

Marks & Spencer to shut 100 stores by 2022 amid online push

However, M&S improved its gross margin in the clothing and home division for the year by 50 basis points.

However M&S, one of the best known names in British retail, faces unrelenting competition from supermarkets and discounters, fashion chains like Zara, H&M and Primark, as well as Amazon, while pressure on consumer spending is hampering efforts to revive its business.

Back in 2016, M&S embarked upon a five-year overhaul of its United Kingdom stores amid fierce competition from supermarkets and budget garment chain Primark - and particularly from online giants like Amazon.

Excluding the restructuring charge, the stores group's adjusted pre-tax profit was down 5.4% to £580.9mln from £613.8mln previous year, weighed by a 140 basis points drop in the food gross margin as a result of a weaker pound pushing up input cost inflation.

Revenue nudged up 0.7% to £10.7 billion.

M&S recently announced the next tranche of United Kingdom stores proposed for closure or set to close as it reshapes its United Kingdom store estate with plans to take at least a third of sales online.

"The first phase of our transformation plan, restoring the basics, is now well under way and the actions taken have increased the velocity of change running through our business".

More news: Now, RJD to stake claim to form govt in Bihar

"These changes come with short-term costs which are reflected in today's results".

The move, which has been touted as part of a "radical transformation" plan by the retailer after years of falling sales, represents a "dramatic retreat from the United Kingdom high street that will trigger thousands of job losses" says The Guardian. "Accelerated change is the only option".

Sacha Berendji - retail, operations and property director at M&S - said "we are making good progress with our plans to reshape our store estate to be more relevant to our customers and support our online growth plans".

"There are a number of structural issues to address and we are taking steps towards fixing these", said chief executive Steve Rowe.

"The new organisation will largely be in place by July and the team is now tackling transforming our culture to make M&S a faster, lower cost, more commercial, more digital business".

Rowe said it was targeting sustainable, profitable growth in three to five years time.

Related News:

Most liked

Syria police deploy in south Damascus after Daesh defeat
The US military is in much of the east and northeast, which is controlled by Kurdish groups that want autonomy from Damascus . Anti-Assad rebels now mainly control just two large areas in the northwest and southwest near borders with Turkey and Jordan.

ISIS Militants Evacuated from Southern Damascus to Desert
State-run Al-Ikhbariya TV said government forces plan to drive the militants from their remaining strongholds in the area. While Mr Assad has vowed to win back "every inch" of Syria, the map of the conflict suggests a complicated time ahead.

Frantic effort to save officer who was run over
At least one armed suspect is being hunted by Baltimore County authorities after the shooting in Baltimore's Perry Hall community. It's a quiet community. "This is a bad time in the United States for law enforcement", he said. "It's just so sad", Amendt said.

Emery set to succeed Wenger as Arsenal boss
Arsenal insist that they ran a "thorough process" to find their successor to Arsene Wenger which included "many hours of research, analysis and interviews with prime candidates".

Warriors run riot in Game 3
The league can't mandate that games be close in the fourth quarter; sometimes there's just a lot of blowouts. "That's it. Perhaps more significantly, the 41-point margin of defeat was Houston's heaviest in a playoff game.

Netanyahu thanks United States for new Iran policy outlined by Pompeo
The state secretary noted that every country has to take part in the United States' sanctions campaign against Iran . It let Iran keep its nuclear infrastructure and keep enriching uranium if not by as much. "We couldn't get it done".

Mourinho bemoans losing at his own game to Chelsea's Conte
Because after these two seasons I will always love this colour, these fans, this club. To win an important trophy in this season for sure it was very hard for many reasons.

Revealed! Why Prince Harry cried during his royal wedding
Pageboys John and Brian Mulroney accompanied Meghan Markle on the journey from her hotel to Windsor in a vintage Rolls-Royce. At yesterday's marriage ceremony for Prince Harry and Meghan Markle , the guests did not disappoint.

Lima Group Recalling Ambassadors for Consultations After Elections in Venezuela
Venezuelan officials have declared socialist leader Nicolas Maduro the victor of Sunday's presidential election . He said Mr Maduro must allow humanitarian aid into Venezuela and that the U.S. will not "sit idly by".

Karnataka Election Results: Congress and BJP stake claim, all eyes on governor
Senior Congress leader Ghulam Nabi Azad said, "The single largest party doesn't have the numbers". Both the BJP and the Congress have a bitter experience with both the senior and junior Gowdas.

Missing South Carolina child found safe
PREVIOUS STORY: Authorities are asking for the public's help in finding a missing two year old believed to be in Minnesota. The Winneshiek County Sheriff's Office arrested William and Jessica Ray after a traffic stop on Thursday near Decorah.

Pregnant Cardi B Rushes to Offset's Hospital Bedside After Car Crash
Other reports are stating that his fiancée, Cardi B , rushed to be by Offset's side when she found out about the vehicle crash. Cardi previously confirmed the pair are expecting a baby girl, shortly after she hinted at the baby's sex at the Met Gala.

Pregnant Broadway Actress Injured In Car Crash Loses Unborn Baby
The woman allegedly responsible for the March crash, Dorothy Bruns , has been charged with manslaughter. The crash took the lives of Miles' daughter Abigail Blumenstein and one-year-old Joshua Lew .

Lewis Hamilton 'close' to new deal with Mercedes
Third place went to Red Bull Racing's Max Verstappen , some 26 seconds behind the victor . "We got through a large programme and did 151 laps which is a good sign of reliability".

Apple shares open lower as HomePod fares badly against the competition
Alibaba, Apple and Xiaomi meanwhile advanced their shares from 0 percent to 7.6 percent, 6 percent, and 2.4 percent respectively. Now, a new report claims that Google is slowly catching up to Alexa while Apple lands far behind the rest of the pack...