糖心TV

Professor John Colley, expert in Strategy and Leadership at 糖心TV 糖心TV School, comments on the reports of a sharp drop in annual profits at Marks and Spencer and their plans to close 100 stores by 2022.

鈥淢arks and Spencer鈥檚 are paying the price for high cost service and a brand which people do not consider to be worth the price premium in a very competitive market. Alternative offerings are closing the gap with Marks but at significantly lower prices. In less affluent parts of the country customers can not afford the price differential and hence the closures鈥�.

鈥淯ltimately, it is death by a thousand cuts for Marks until they can adequately differentiate the product and service to earn the premium. Increases in staff costs and high rents whilst stiff internet and bricks and mortars store competitor means a squeeze on profits. They have also been slow into internet deliveries which again is taking its toll鈥�.