marks & spencer franchise

Franchise News India : Marks & Spencer is the latest retailer to admit defeat after trying to expand alone in the crucial Chinese market.

Britain’s largest clothing retailer, which has 15 wholly-owned stores in Shanghai, is following in the footsteps of both Tesco and B&Q owner Kingfisher by announcing plans to find a local partner.

M&S is to also close a third of 15 stores in the country but will open five in better locations.

Chief executive Marc Bolland said: ‘When we started in China we said we wanted to establish strong flagship stores.

‘We have done that. Now a partner could help us roll it out across what is a vast country.’

Last year Tesco announced an end to the supermarket’s solo attempt to crack the country, while last week Kingfisher also said it was seeking a partner.

The change comes as M&S announced plans for 250 stores in India, China, Russia and the Middle East with franchise business partners.

M&S will establish flagship stores in key cities with both food and local language websites.

In France the firm is rolling out 20 standalone food stores following success in the Champs Elysees store, which sells more food per square foot than any store in the UK. Bolland will also extend the European food business within existing clothing stores.

M&S has come full circle, having reversed a decision to retrench international strategy to focus on fixing the troubled home market. In 2001 the group closed 38 stores in continental Europe, including 18 in France.

Marks has been struggling to grow clothing ranges. In January M&S posted a tenth consecutive quarter of poor sales while exceeding the market with food sales.

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