M&S to create 3,400 jobs as it opens new shops

Marks & Spencer has said it will create 3,400 jobs across Britain as part of plans to revamp its stores.

It plans to open eight "full-line" stores - which stock clothes, food and homeware - in cities such as Liverpool, Birmingham and Leeds in the next year.

Seven of the eight shops will be relocations, of which five will be at former sites of Debenhams.

Some 12 food halls will also be opened as part of an overhaul of the company's stores.

Once completed, the changes will see a reduction overall in the number of M&S's traditional shops as the firm looks to expand its grocery trade.

New Simply Food outlets will be opened in towns including Stockport, Barnsley and Largs in North Ayrshire, Scotland.

Five of the eight new "full-line" stores will be situated on former Debenhams sites in the Leeds White Rose, Liverpool ONE, Birmingham Bullring, Manchester Trafford and Lakeside Thurrock shopping centres.

A new shop will also open in Purley Way in Croydon, while the other two are yet to be named.

Marks & Spencer said it was investing £480m in its "store rotation programme", which will see 3,400 jobs being created over the next three to five years.

It confirmed the jobs were new roles in additional to those that might be part of stores that relocate to different areas.

M&S chief executive Stuart Machin said the programme was about "making sure we have the right stores, in the right place, with the right space".

"The out-performance of our recently relocated and renewed stores give us the confidence to go faster in our plan," he added.

Last year, M&S announced plans to reduce the number of its "full-line" shops to 180 from 247 by 2028.

The retailer wants fewer but better main stores, as shoppers spend more online.

Russ Mould, investment director at AJ Bell, said it felt "significant" that M&S had revealed its investment figure at a time when the "retail environment is not exactly buoyant".

"The company had already announced plans to close a large number of shops last October so on a net basis its presence in retail parks and on the High Street will be reduced.

"However, it demonstrates physical retail continues to have a role and that Marks & Spencer sees its multi-format stores, with a mix of clothing, homewares and food, as a competitive advantage.

"The push to revamp the store estate also shows it recognises the importance of having sites which are appealing for shoppers to visit and are in the right places to attract healthy footfall."

The new jobs announcement comes after M&S emerged as one of the winners of the Christmas trading season, with a 6.3% rise in like-for-like sales across its food halls in the 13 weeks to 31 December.

The company also saw clothing and home store sales rise 8.6%.

It said recent sales across stores already revamped as part of its overhaul had seen better-than-expected trading, with clothing and home sales 26% ahead of plans in its new Colchester store.