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The Guardian: Marks & Spencer To Cut Hundreds Of Jobs At London Hq

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Marks & Spencer to cut hundreds of jobs at London HQ

Marks & Spencer has confirmed plans to cut 525 jobs from its head office in London and is to move another 400 roles outside the capital as part of a £15m shakeup.

The retailer is consulting with head office staff including those in buying, merchandising and marketing about the job cuts, which are part of new bossSteve Rowe’s attempts to reduce costs and simplify the business.

The net reduction in staff numbers, which first emerged over the weekend, will be achieved through a combination of redundancies, non-replacement of leavers and cutting contractors.

On top of the job cuts, 400 IT and logistics staff will move from central London to M&S’s IT centre in Stockley Park, Middlesex, and its distribution hub in Hemel Hempstead, potentially enabling M&S to move out of one of its two head office buildings near Paddington.

M&S has about 3,000 head office staff working across seven locations so the changes will affect about a third of them. M&S said it would engage in collective consultation with its employees about the changes via elected employee representatives on its Business Involvement Group. M&S currently does not recognise a union.

The retailer said it hoped the changes would save about 1% of its UK costs, after a one-off charge of £15m including payoffs for senior managers including Stephanie Chen, head of childrenswear and homewares, and digital boss David Walmsley. Their departures were announced earlier this year.

The cuts are part of Rowe’s effort to turn around M&S after its biggest fall in clothing sales since the 2008 banking crisis.

So much so for recovery......

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potentially enabling M&S to move out of one of its two head office buildings near Paddington.

Are they planning out cash out on London HPI by selling one/two buildings? Convert into flats to rent out? Can't go wrong with BTL...

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Interesting move- appears to be away from clothing for some stores.

 

http://news.sky.com/story/marks-spencer-to-axe-dozens-of-high-street-stores-in-rowe-revamp-10644351

Quote

The new boss of Marks & Spencer (M&S) is to axe dozens of UK stores and stop selling clothing in others in a radical shake-up of its high street presence aimed at persuading the City that he can revive the fortunes of Britain’s best-known retailer.

Sky News has learnt that Steve Rowe, who took the helm at M&S earlier this year, will announce next week that a substantial chunk of its UK store portfolio is to be reorganised, a move that will include the outright closure of a significant number of shops.

Sources said on Friday that the closures, which will take place over several years, would number "in the low dozens", while other stores will see space reallocated from clothing to its more successful food operations.

 

 

Edited by Ash4781

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On 05/09/2016 at 8:35 PM, nothernsoul said:

Whenever ive been in M&S near me the food section is busy, the cafe rammed, the clothes floor is dead. Is this typical of their other stores?

Is it simply because the demographic has altered ? Seaking as a bloke, their market for sports jackets, corduroy, pique polos, lambswool sweaters may have all of those that they need and the younger generation buy quite different clothes, and may now never migrate to jackets and cords. Outside 'outdoor wear', hiking etc, I haven't bought any new clothes for at least 10 years. M&S provide a different clothing offering to pretty much all other on the high street, but perhaps there just isn't sufficient, continuous demand.

Edited by LiveinHope

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On 05/09/2016 at 8:35 PM, nothernsoul said:

Whenever ive been in M&S near me the food section is busy, the cafe rammed, the clothes floor is dead. Is this typical of their other stores?

I have been told the clothes are crap. 

I stopped buying their shoes when the price went up and the quality fell off a cliff.

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This is what eventually happens when you cut the quality of your product and think your brand will carry you.

Works OK if you are a semi-cult like Apple, doesn't work so well when you have legions of competitors offering the same stuff for much less dough against a backdrop of falling prosperity for your traditional customer base.

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Agree.  It is the fabric that they use now that is really tells no.  A few years ago, a tee shirt would last forever. Now, a couple of washes and it looks like you are dressed in old dishcloths 

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The prices of the clothes aren't cheap and the designs aren't as good as in the past and no better than other stores increasingly cheapskating with for example fewer and smaller pockets, smaller zips and so on.

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M&S tend to do this when there's recession (close down lots of stores etc) so it sort of exposes the lie that Britain is in recovery.  Apple moving out of central London is another sign.

At the moment at least they can still rely on grotesque house prices in London and they've still got BtL.  

M&S went into banking some years ago and should maybe now go into Build to Rent like Lloyds.

Edited by billybong

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Can vouch that the cotton sports socks used to be amazing but since maybe 2010 no more.  The rest of the stuff does seen over priced to similar from say Saintsbury's, though not sure how much better it is.  Did get a present a year or so ago of a long sleeve t-shirt that I rated highly but think it cost something like £30. 

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1 hour ago, One-percent said:

Agree.  It is the fabric that they use now that is really tells no.  A few years ago, a tee shirt would last forever. Now, a couple of washes and it looks like you are dressed in old dishcloths 

I used to buy my tshirtsfrom m+s. Used to be no brainer.

Quality fell off cliff 5 years ago. Switched to fruit of loom of amaxon. Just bought a few with different guesttimate sizes, found one that fitted. 

Thats about 50/year of regulat business mands lost. They all add up.

ManSs problem goes back to that bellend ceo in the 90s. Greenbury.

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The quality of their clothes went downhill when for cost reasons  they stopped manufacturing in britain, I believe they were one of the last companies to do so. The problem they have is they are squeezed from below by rock bottom prices at primark, Next takes a lot of their officewear trade at a similar pricepoint. They built their reputation on quality garments at affordable prices but they cannot afford to do this proditably now at their tier in the market. The public has become used to cheap, disposable fashion and it has become difficult to buy good quality new clothes and shoes at a reasonable price.

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2 hours ago, Errol said:

Yes, quality has gone through the floor. They will go bust if radical change is not made quickly.

I think they will go under in the longer term Errol or restructured to a rump.Just over the road from me is a huge area of concrete where an M&S supplier used to have a big factory.Its got a few horses on ropes wandering around on it now and is up for sale for housing.Id say their quality is better than Next still even though they all use far east suppliers,but not enough to get people to pay double some other retailers.

We have one of their Simply Food places and that seems to do well though i dont know how.The prices are crazy considering the quality isnt any better than other supermarkets on most products.

A company that seems to have no reason to exist anymore.

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The customer they want, but will never get for non food items, is john lewis's, the type of person who will pay 800 quid for a baby buggy. Their declining fortunes will also mirror that of the town centre, where their older larger stores take pride of place. 

 

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3 hours ago, SarahBell said:

I have been told the clothes are crap. 

I stopped buying their shoes when the price went up and the quality fell off a cliff.

...quality has gone down and prices up.....hard to find something decent that is 100% natural fibers ie cotton of reasonable quality, weight and thickness, even the zips are half the length they used to be, and the pockets are half the size.;)

Edited by winkie

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On 5 September 2016 at 8:35 PM, nothernsoul said:

Whenever ive been in M&S near me the food section is busy, the cafe rammed, the clothes floor is dead. Is this typical of their other stores?

thats because the food is amazing, and the clothes are awful and frumpy. They've also cut back on staff and the customer service for suits and formal ware is atrocious.

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