Marks & Spencer is considering a major expansion to its food store portfolio, just months after it was targeted by a cyber attack. The classic British retailer has already begun scouting around 500 sites around the UK, as it looks at a vast expansion of its food side of the business.
M&S already has more than 300 shops around the UK, with the majority of locations coming in the form of M&S Food sites in retail parks around the nation. The business suffered a tough start to the year, losing £324 million from a cyber attack that impacted their services for around four months but are looking to bounce back with plans to double their brick-and-mortar locations in the next few years.
The business has drafted plans to increase its offerings to 180 mixed stores (department stores with a food section) and 420 dedicated M&S Food shops.
Much of this expansion is focused on the capital, with 200 potential sites being eyed up in areas around London.
According to The Times, M&S is focusing much of its search in Zones 2 and 3, with desired locations being around 10,000 to 18,000 sq ft and in prominent areas.
But the much-loved retailer has already begun expanding ahead of a busy festive period. More than a hundred people queued up outside for the launch of their new 7,200 sq ft Clapham location in South West London earlier this week with a new store in Bristol also opening in recent weeks.
On the new locations, Alex Freudmann, managing director of M&S Food, told the news outlet: “The strong performance of our new M&S Food stores gives us the confidence to explore even more locations across the UK, from Elgin [in Scotland] to Exmouth [in Devon].
“With more than 20 stores opening or modernised before the end of the financial year, we are moving faster.”
But despite the optimism, there is no doubt that this year has been one to forget for the retailer. Only weeks ago, it announced its pre-tax profits fell by 99% from March until September, down to £3.4m from £391.9m compared to the year before.
Chief executive Stuart Machin added: “We are regaining momentum. In food we continue to outperform the market, with three years of consecutive monthly volume growth.”
Food is something that will become core to the M&S business. Currently, the retailer holds just four per cent of the grocery market, but with more than 50 stores already on their way, and a sweeping refurb across half of their shops, this is something they hope to change.
Its nationwide scouting mission and promise of a “finder’s fee” for agents has led to locations around the UK being eyed up.