M&S 'to announce shake-up'

M&S is pinning its hopes on its spring collection

It is rumoured that Marks & Spencer is preparing to announce a radical shake-up of the High Street chain in a fresh attempt to halt falling sales.

An announcement could be made on Thursday about the restructuring plans, according to the Financial Times.

The reported changes are said to focus on store closures in mainland Europe, an overhaul of its property portfolio, and an internal restructuring of business units.

Luc Vandevelde: Pledged to turn sales slump around

The moves are expected to lead to heavy job losses throughout the group, said the FT.

M&S will be hoping that any changes will signal a turnaround in its fortunes, especially its flagging clothing sales.

The retailer recently announced more disastrous sales figures - with its core clothes sales falling about 10% over the Christmas period.

The reported changes follow a review of the business by M&S's new managing director, Roger Holmes, who has previously run Woolworth.

Criticism

The company has refused to comment on the speculation.

Mr Holmes is said to have been working closely with the chairman of M&S, Luc Vandevelde, who has given himself until the end of this year to begin the turnaround in the store's fortune.

Mr Vandevelde has reportedly been criticised in the City for failing to take decisive action, said the FT.

He has concentrated more on restructuring top management and clearing out the M&S "old guard", it said.

Advertising campaign

The company has introduced a number of measures over the last year to try to increase sales.

George Davies, who successfully built up clothing chain Next and the George range of clothing at Asda, was hired earlier this year to launch a new womenswear collection.

Last Autumn the company launched its first TV advertising campaign, which it hoped would alert people to the fact that M&S wanted to change, but has so far failed to attract people back.

A year ago it launched its Autograph designer collection, which has been heavily criticised for being pricey yet lacking the exclusivity of a designer brand.

But its spring collection has recently received good reviews.