Marks & Spencerconfirmed today
that it will be shutting 27 stores and shedding 1,200
jobs.
IT jobs could be at risk, with 450 jobs going at the company's
head office as the retailer looks to cut costs. The
redundancies will see a cut of about 15% in headcount at its
head office.
The retailer's UK sales in the four months to 27 December were
down 3.4% compared to the previous quarter, despite 20%
discount-days before Christmas and the company's biggest ever
trading day on 23 December, when it netted more than £50m worth of
sales.
As a result 27 stores will be closed, 25 of which are small
Simply Food stores. Capital expenditure will be capped at £700m for
2008/09 and £400m for 2009/10.
Chief executive Stuart Rose said, "We are aware that the
proposed changes set out above will be difficult for those members
of staff impacted, but given that we expect challenging economic
conditions to continue for at least the next 12 months we believe
we are taking the right action to maintain the strength of our
business."