Yahoo Finance Marks & Spencer must go global to survive another century, says chairman
Marks & Spencer must become “a global brand” to survive another century, its chairman Archie Norman has said.
Mr Norman, who took over M&S in 2017, said the company was looking at international expansion amid signs that a turnaround effort in Britain is bearing fruit.
He said: “We would like M&S to be here for another 100 years, but to do that it has ultimately got to become a global brand. I think we see that as the phase after this one.”
M&S, which was founded in 1884, currently sells its goods in more than 100 countries over the internet and through a network of local partners that stock its goods. International sales rose 11pc last year to £1.1bn, with around a quarter coming from the Republic of Ireland.
Online sales are also growing rapidly, with overseas buyers now double what they were pre-Covid. Demand is particularly strong in India and Europe, with M&S opening a warehouse in Croatia to stock items destined for EU buyers.
While growing fast, international sales remain only a fraction of the company’s overall revenues.
Mr Norman’s focus on overseas growth comes after a renaissance for M&S, which spent years in the doldrums.
A turnaround plan engineered by Mr Norman and led by chief executive Stuart Machin has seen shares more than doubled in 2023.
Performance has improved after M&S closed more than 100 stores, introduced third-party brands to its clothing ranges and invested in lowering food prices.
In August, Mark & Spencer re-entered the FTSE 100.
Preparations for renewed international expansion will revive memories of M&S’s troubled past efforts to grow outside of Britain.
The department store bought historic tailor Brooks Brothers, which pioneered the off-the-rack suit, in 1988 to gain a foothold in the US.
However, M&S ended up selling the American chain in 2001 for less than a third of what it paid after struggling to make the deal work.
A decade later, M&S opened a flagship store on the Champs-Élysées in Paris. However, this was shuttered alongside dozens of other branches in 10 countries in 2016.
In an interview with the Sunday Times, Mr Norman insisted the company would not make the mistake of “flag planting” again, adding: “You have to choose where you compete and be strong in individual markets.”
The 69-year-old suggested M&S could follow the examples of fashion chains Zara and H&M, which maintain a unified brand but vary their product ranges by region.
