‘A crying shame’ say shoppers as beloved high street name with over 1,000 stores to disappear from two locations TODAY
A BELOVED high street name with over 1,000 stores will disappear from two locations today in a move dubbed a “crying shame” by shoppers.
The brand has been a staple of British towns for almost 150 years but a “turnaround plan” is set to see a total of 67 sites close into next year.
Marks & Spencer CEO Stuart Machin has set about overhauling the legendary department chain in a bid to right the ship after several years of financial struggles.
The project has seen significant investment into the company’s food and clothing output, as well as its supply chain.
However, it has also been accompanied by swinging cuts to underperforming stores.
A total of 67 are set to close in waves running into 2025, with the latest affecting two stores in the North East.
Our plan is working
Stuart Machin
The city centre branch in Sunderland and the smaller site in Hexham, Northumberland, will shut their doors for good within hours.
Shoppers were left devastated by the decision, with one describing it as a “crying shame”.
Norma, an 84-year-old M&S regular in Sunderland told BBC News: “I feel very emotional, it’s been here all my life.
“We come here every week, it’s certainly going to change how often I come into the town centre.
“I won’t be coming in as often which is sad.”
And Joe Morris, the Labour candidate in Hexham for the upcoming General Election, called the closure “a blow to Hexham and Tynedale” and “another example of the decline that this area has seen.”
He added: “I used to walk through Hexham and see a thriving high street, but now it’s peppered with empty shop fronts.
“Shoppers have lost choice and there is real concern over the future of the site.”
The closures come despite the company’s revival plan seemingly already starting to bear fruit.
Just last week, M&S reported its first dividend since 2019 as profits shot up by 58% to over £716 million, a rise much larger than had been expected.
Why are retailers closing stores?
RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.
The high street has seen a whole raft of closures over the past year, and more are coming.
The number of jobs lost in British retail dropped last year, but 120,000 people still lost their employment, figures have suggested.
Figures from the Centre for Retail Research revealed that 10,494 shops closed for the last time during 2023, and 119,405 jobs were lost in the sector.
It was fewer shops than had been lost for several years, and a reduction from 151,641 jobs lost in 2022.
The centre’s director, Professor Joshua Bamfield, said the improvement is “less bad” than good.
Although there were some big-name losses from the high street, including Wilko, many large companies had already gone bust before 2022, the centre said, such as Topshop owner Arcadia, Jessops and Debenhams.
“The cost-of-living crisis, inflation and increases in interest rates have led many consumers to tighten their belts, reducing retail spend,” Prof Bamfield said.
“Retailers themselves have suffered increasing energy and occupancy costs, staff shortages and falling demand that have made rebuilding profits after extensive store closures during the pandemic exceptionally difficult.”
Alongside Wilko, which employed around 12,000 people when it collapsed, 2023’s biggest failures included Paperchase, Cath Kidston, Planet Organic and Tile Giant.
The Centre for Retail Research said most stores were closed because companies were trying to reorganise and cut costs rather than the business failing.
However, experts have warned there will likely be more failures this year as consumers keep their belts tight and borrowing costs soar for businesses.
The Body Shop and Ted Baker are the biggest names to have already collapsed into administration this year.
Shares in the brand also rose by 10% to a six-year high.
Mr Machin said: “This trading momentum gives us wind in our sails and confidence that our plan is working.”
Philip Barker-Thomson, M&S Regional Manager, added: “We want to thank all our customers and colleagues in our Hexham and Sunderland stores.
“Shopping habits are changing and our store rotation programme is about making sure we have the right stores, with the right space to offer the best possible shopping experience.
“Over the last year, we have invested £13 million in our stores across the North East, including renewing our Newcastle store, and we are fortunate to work with over 280 Select Farm partners in the region.
“This year we expect to open up to four new full-line stores and nine new foodhalls across the UK, including our brand-new 43,000 sq ft full-line The Galleries store in Washington next week.
“The store will offer the very best of M&S Food and our latest Clothing collections, as well as being run on 100% electric energy as part of our commitment to become a net zero business by 2039/40.