M&S opens new store in China
In this article (5)
Marks and Spencer has opened its first store in Beijing. In 2014 the high street stalwart earmarked China, Russia, India, the Middle East and Western Europe for international expansion. Chief Exec Marc Bolland cited plans to open 250 new stores overseas in three years. The aim was to boost international sales by a quarter and increase profit up by 40%.
Patrick Bousquet-Chavanne, M&S’s Executive Director of Marketing & International, told Reuters the company was still committed to both Russia and China but that those overseas targets were now unattainable. The plans changed.
“We’re looking at places which are very much ‘tier 1’… where you have an upper middle class consumer base… where we will do well even in the context of a slowdown in the economy,” Bousquet-Chavanne said in September.
The new store in Beijing follows a change in company policy which outlines the closure of stores in ‘secondary cities’ across China, and a focus on flagship stores in major cities instead.
The 1,500 sq m store opened at The Place shopping centre, and will sell selected food and drink as well as M&S clothing.
Although this will be its first venture into Beijing, M&S has 10 stores in the Shanghai region and 20 in Hong Kong. Its empire covers over 1,300 stores, 852 of which are in the UK.
Questions & Answers
Q.What was the original international expansion target for M&S and how has that changed?
What was the original international expansion target for M&S and how has that changed?
M&S originally aimed to open 250 new stores overseas in three years, targeting a quarter boost in international sales and a 40% increase in profit. These ambitious targets are now considered unattainable by the company.
Q.Which specific regions did M&S initially identify for international growth?
Which specific regions did M&S initially identify for international growth?
In 2014, M&S earmarked China, Russia, India, the Middle East, and Western Europe for its international expansion strategy. They intended to significantly grow their presence across these diverse markets.
Q.What is the new strategy for M&S stores in China?
What is the new strategy for M&S stores in China?
The new strategy involves closing stores in 'secondary cities' across China to focus on opening flagship stores in major cities. This aims to target an upper middle-class consumer base.
Q.How many M&S stores are there globally and within the UK?
How many M&S stores are there globally and within the UK?
M&S has an empire covering over 1,300 stores worldwide. Of these, 852 are located within the United Kingdom, forming the majority of their retail presence.
Reader pulse
Is this refined China strategy the right move for M&S?
20,171 votes so far