M&S plans to invest ?480 million in a major redesign of its store estate that includes the opening of 20 new, larger stores in the years 2023?2024.

Marks & Spencer, a British apparel and food retailer, plans to invest £480 million in a major redesign of its store estate that includes the opening of 20 new, larger locations in the years 2023–2024.

Over 3,400 new jobs will be created across the United Kingdom, according to the 139-year-old organisation, which announced the investment on Monday.

Despite the growth of online shopping over the past twenty years, M&S's decision demonstrates the continued significance of physical stores to merchants.

The Christmas shopping season saw a post-pandemic shift from online to physical shopping, according to M&S, Next, and JD Sports Fashion, three other clothing companies.

According to Chief Executive Stuart Machin, "stores are a vital part of M&S's omnichannel future and serve as a competitive edge for how people want to purchase today."

M&S announced plans last October to ‘speed up’ what it refers to as its store rotation programme, completing what was originally a five-year plan by 2025–2026.

The plan calls for 67 less full-line M&S stores to be closed, leaving 180 higher-quality, more productive stores that sell the entire group's selection of clothing, home goods, and food, and adding 104 more food-only stores to bring the total to 420.

According to Machin, "Our shop rotation programme is about ensuring that we have the right stores, in the right location, with the correct space.

He stated that shoppers who use numerous channels to purchase from M&S are eight times more valuable.

Eight full-line stores, including ones in Leeds, Liverpool, Birmingham, and Manchester, are part of M&S's new store pipeline for 2023–2024, the retailer stated last week after reporting better-than-expected Christmas sales. There are also going to be 12 new M&S dining halls.

Building on collaborations with BP, Moto, SSP, and Costa, M&S wants to grow its franchise model in addition to its investment in owned stores to increase the variety of convenience stores it offers.

M&S is paying portions of its initiative with development value released at several of its older UK locations, including its flagship location in Marble Arch.

Early trading saw a 1% increase in M&S stock. Despite a 24% increase in the past month, the stock is still down 34% from its year-earlier high.

(investing.com, reuters.com)