Marks & Spencer Philippines on the Brink: Store Closures & Deep Discounts Signal Potential Exit
The continued closure of stores and generous discounts across the Philippines have led to speculation about the sustainability of Marks & Spencer’s (M&S) local operations. This comes as the brand’s long-time franchise partner starts to shut down several outlets in the region.
M&S has enjoyed a presence in the country for over thirty years through a partnership with the Rustan’s Group of Companies, which was bought by SSI Group last year. In recent times, several key M&S stores including those located at TriNoma, Robinsons Manila, Marquee Mall, and Ayala Center Cebu have ceased operations. Rumors also abound about the possible closure of the brand’s outlet at the SM Mall of Asia.
The remaining outlets have resorted to hefty discounts of up to 60% and ‘buy-one-get-one-free’ deals as they attempt to clear stock. Specifically, at the Rockwell and Greenbelt stores, the variety of food for sale has dwindled, with empty refrigerators and shelves filled with repetitive products.
The M&S Philippines website still promotes 13 branches across the country, which includes outlets in Davao and Laguna. This is a significant reduction from the over 20 stores that were operating at the height of the brand’s popularity in the country.
This pattern of store closures and heavy discounting has led to conjecture from both customers and industry experts that M&S may be contemplating an exit from the Philippine market. Customer reactions, particularly online, have been largely negative, with many expressing disappointment over the potential loss of extended-size clothing ranges that are less commonly available in the local market.
Meanwhile, M&S is in the process of revamping its international operations. In the UK, the retailer is planning to cut the number of its full-line stores from 229 to 180 via closures, conversion to food outlets, and relocation to other full-line stores.
“We’re focusing on bigger, better partnerships, which enable us to bring the best of M&S to the world,” Mark Lemming, MD for international markets at M&S, noted. “As we continue to progress with our strategy, I remain confident in the medium and long-term opportunity for M&S to drive global growth.”
Still, it’s unclear whether the Philippine store closures signal a decision from the franchise partner, the parent company, or both. SSI Group has yet to issue a public comment on the situation.
Questions & Answers
What has led to speculation about the future of M&S in the Philippines?
Store closures and heavy discounting have sparked speculation about the sustainability of M&S’s operations in the country.
What changes are being made to M&S’s international operations?
The company is focusing on establishing larger, more effective partnerships to drive worldwide growth, alongside reducing the number of full-line stores in the UK.
Who is responsible for the decision to close M&S stores in the Philippines?
It is currently unclear whether the decision to close stores comes from the franchise partner, the parent company, or both. SSI Group, the franchise partner, has not yet publicly commented on the matter.