It's not just Paris, it's M&S Paris as retail icon reveals return

Published on Thursday 31 March 2011 22:51

British high street icon Marks & Spencer announced its return to France yesterday, a decade after its retreat from across the Channel left thousands of shoppers disappointed.

The retail stalwart will launch a website in French and open a three-storey outlet on the Champs Elysees in Paris in time for the key Christmas shopping period.

It also wants to open Simply Food stores in and around Paris and is looking for sites for larger food and clothes stores.

M&S closed its 38 branches in continental Europe in 2001 to concentrate on turning around its UK business. It had 18 stores in France, of which ten were in the capital.

But the group, which opened its first store in France in 1975, said it still thought the brand was held in high esteem by the French.

It highlighted a recent survey which showed 70 per cent of consumers in the country recognise its brand, and the firm still gets letters and e-mails from French shoppers who want to see it return.

Speaking from Paris, chief executive Marc Bolland said: "Marks & Spencer has great brand awareness here in France and a place in customers' hearts."

Bolland, who arrived at M&S in May from supermarket chain Morrisons, recently said he wanted to up the pace of the group's international expansion as part of his vision to transform the business. He said the overall investment in Paris would be "relatively modest" and he expected it to quickly become profitable.

M&S already has 358 stores in 42 overseas territories, but Bolland said there was scope for faster growth, particularly in Asia.

The company described its planned outlet on the prestigious Champs Elysees as an "aspirational store", selling womenswear, lingerie and food.

It will be in a 15,000sq ft site formerly occupied by French fashion store Esprit, and M&S said it would retain the 30 existing staff. They will all take part in comprehensive training programmes over the coming months.

The company also plans to open about five Simply Food stores in "strategic locations" such as stations and airports in the French capital.

M&S said it was in advanced negotiations with SSP, which operates 39 Simply Food stores as franchises in the UK, to roll out the brand in Paris.

M&S is also considering "a handful" of larger stores, of about 40,000sq ft, in and around Paris.

The website, which will trade in euros, will enable deliveries across France. The group hopes it will appeal to British expatriates living in France as well as local consumers.

The expansion plans were well received by analysts, although they were not seen as a major move for the FTSE 100 company.

Gavin Rothwell, a research manager at the Institute of Grocery Distribution, said: "The Marks & Spencer brand is recognised around the world.

In France, especially in Paris, there is a sense of nostalgia for M&S and its return will be welcomed by shoppers."

John Guy, an analyst at Royal Bank of Scotland, said: "We don't expect the market to get too excited at this stage.

"There is a lot to do on the domestic front and over the short term, a focus overseas may prove a costly distraction."

M&S is forecast to reveal a decline in like-for-like sales of 2.5 per cent in the 13 weeks to 2 April when it updates the market on Wednesday, according to analysts.

Its general merchandise sales, including clothing, are expected to have dropped 6.2 per cent on a same-store basis, while food sales are forecast to be up 1.3 per cent, boosted by inflation.

Shares in M&S closed up 2.2p at 338.9p.