Retail Giant Makes Tough Decisions for Future Growth
- 62.1% drop in pre-tax profit for M&S
- Store closure programme affecting over 100 stores by 2022
- Cost of store closure programme at £321m
- M&S focusing on online sales with a third of sales targeted to be online
- 626 employees affected by closures, but offered redeployment
Marks and Spencer (M&S) has reported a significant drop in pre-tax profit of 62.1% for the year ending March 2018, as part of an ongoing store closure programme. Profits before tax fell from £176.4m to £66.8m during this period, with the cost of the store closure programme at £321m, which M&S says is in line with its plan. The company has acknowledged that developments in the retail industry have reinforced the need for transformation within M&S due to changes in high street shopping and increased online migration. CEO Steve Rowe stated that these changes come with short-term costs but are necessary for the business’s future growth. M&S plans to focus on online sales, targeting at least a third of their sales to be conducted through digital channels. The store closure programme will affect 626 employees, who will be offered redeployment before redundancy.
Factuality Level: 10
Factuality Justification: The article provides accurate information about Marks and Spencer’s financial performance and store closure plans, citing specific numbers and quotes from the company’s CEO and other executives. It does not contain any irrelevant or sensational details, nor does it present personal opinions as facts.
Noise Level: 3
Noise Justification: The article provides relevant information about Marks and Spencer’s financial performance and store closure plans, but it lacks in-depth analysis or exploration of the reasons behind the drop in profit and the long-term consequences of these decisions. It also does not offer much actionable insights for readers.
Financial Relevance: Yes
Financial Markets Impacted: Marks and Spencer’s stock price and the retail industry
Financial Rating Justification: The article discusses a drop in pre-tax profit for Marks and Spencer, which is related to financial performance. It also mentions the impact of store closures on the company and its employees, as well as the shift towards online sales. This affects both the company’s financial situation and the retail industry overall.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article, and the financial situation of Marks and Spencer does not meet the criteria for a major crisis or disaster.
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