Marks & Spencer plan to expand with a new store to be launched on Champs Elysees in Paris. The new store will be part of a strategy to concentrate on expansion into Europe as sales fall in the United Kingdom. Although the company reported growth in sales during the last quarter of 2010, the first quarter of 2011 has been disappointing, with sales falling between four and eight per cent. Shares have also fallen by 12 percent during the last six months.
As the effects of benefits and job cuts take hold, with incomes dropping, consumers are becoming increasingly wary of spending. Even stable areas such as food, children and holidays are experiencing a fall in sales. As sales fall, Marc Bolland, the new Chief Executive will continue with plans to expand into Europe, with Simply Food stores being opened in Paris as well as stores in railway stations and airports.
Although in 2001 M & S closed its 38 stores in Europe in order to concentrate on rebuilding its business in the UK, the company are confident that moving away from the struggling UK economy will encourage new growth for the group.
Many businesses will be feeling the effects of job losses and spending cuts which is why outsourcing to a small business accountancy will increase return on investment. A low cost accountant will prepare a strategy for the future of your business, based on real time figures which provide accurate growth projection.
Want to learn more?
Subscribe to our newsletter to get accounting tips like this right to your inbox
About The Author
Content Writer working alongside our expert accountants to bring you the latest Tax and Accounting news.