M&S eyes up Europe

M&S wants to plant its flag in mainland Europe once again, and has reportedly been approaching retailers to secure outlets abroad.

According to The Sunday Telegraph, the retailer has contacted Galeries Lafayette in France and Spanish chain El Corte Inglés to relaunch its international stores, all of which it closed nine years ago.

M&S is looking at re-acquiring some of the 18 outlets it let go to Galeries Lafayette back in 2001, which includes the flagship store in Paris’ Boulevard Haussmann, M&S’ first European store, which opened in 1975.

The potential cost to the department store of the re-acquisition is not yet known, although it sold its nine Spanish stores to El Corte for £130 million in 2001.

M&S’ European closure was caused by haemorrhaging sales which dropped from a £38m profit in 1997 to a £6.1m loss in 2000 and then a £10.8m loss in 2001.

The decision to close its European operations was the source of major upset in Europe as more than 3,000 jobs were lost.

According to the newspaper, M&S already has plans to grow in Asia, too.

Jane Parkinson, 01.11.2010