M&S renews foreign expansion drive

M&S products are set to grace two Indian stores

Troubled retailer Marks & Spencer, which in March caused outcry by announcing a retreat from overseas markets, has revealed a surprise expansion into India.

The firm is to open stores in Delhi and Bombay, and said it will consider further outlets if the initial shops prove successful.

The shops will be run as a franchise by Planet Sports, an Indian-owned firm which is based in Hong Kong, and will also be responsible for finding suitable store sites.

The stores will, with floor space of about 8,000 square feet, be smaller than most UK outlets, and will initially sell only M&S clothing.

"India is a good market with good affiliation with the UK and a lot of people [in India] know the Marks & Spencer brand," a company spokesman said.

French demonstrations

The new comes five months after Marks & Spencer announced the controversial closure of 38 stores on mainland Europe, and the sale of US operations, as part of a UK-focused recovery plan.

"These changes put in place a clear thorough and urgent plan for recovery based on the UK business," chairman and chief executive Luc Vandevelde said at the time.

He forecast that a restructured M&S would be better positioned "in time, [to] seize new opportunities both in the UK and abroad".

The announcement prompted widespread outcry, particularly in France, where workers launched demonstrations, and Prime Minister Lionel Jospin threatened legal action, over store closures.

The firm has since sought buyers for the 18 French stores, with a shortlist set to be drawn up by October.