The group mentioned on Thursday that its remaining nine franchise merchants, run with Lagardere Vacation Retail, will continue on to trade and the pair ended up doing the job on a sustainable long term business product.
M&S Chairman Archie Norman has been complaining for months that the retailer has struggled to get items into EU customers Ireland and France since Britain still left the EU’s one industry at the beginning of the calendar year, owing to the enormous amount of more paperwork that was required.
“M&S has a prolonged background of serving customers in France and this is not a choice we or our spouse SFH have taken frivolously,” mentioned Paul Friston, M&S’ global director.
“However, as points stand right now, the offer chain complexities in area adhering to the UK’s exit from the European Union, now make it close to impossible for us to provide fresh and chilled items to customers to the substantial requirements they anticipate, ensuing in an ongoing effect to the general performance of our business.”
The eleven merchants that will close by the conclude of this calendar year are found predominantly across the substantial streets of Paris.
The nine merchants run by Lagardere are found in journey hubs this kind of as airports, railway and metro stations.
In April, M&S reconfigured its food business in the Czech Republic to clear away offer chain dangers. It took out all fresh and chilled items from merchants, and doubled ranges of frozen and ambient items.
Last thirty day period, M&S upgraded its gain outlook following a leap in demand for food in its dwelling industry and a surge in on the net clothes sales indicated that its newest turnaround plan was starting off to deliver.
Shares in M&S ended up down 1.three% at 0951 GMT, paring 2021 gains to 34.8%.