M&S to open first Spanish high street store
Whilst a plan to close 100 of its stores by 2022 is underway in the UK, British retailer Marks & Spencer has agreed terms to open its first high street store in Spain.
The department store group has selected Malaga for its new location, which will be its second site in Spain and following a store in La Cañada shopping centre in Marbella.
The 4,305-square-foot store, located on Calle Nueva in the historic centre of the city, will be home to the brand’s lingerie line. It represents a change of strategy for the company considering that its inaugural Spanish store opened more than 10 years ago in 2009.
Marks & Spencer could be looking at the Spanish market for growth amid challenging trading conditions in the UK. In its home market, the department store group is not only facing strong competition from fashion and online brands, but the rise of online shopping is driving consumers away from the high street and growing costs such as business rates and the decline in the pound are threatening its profitability.
Indeed, its half year report revealed little progress last month, with group revenue down 3.1% after sales increased by just 0.7% in the year ended 31 March 2018.
Marks & Spencer will join fashion brands including Victoria’s Secret, Parfois, Massimo Dutti and Kiko Milano the historic centre of Malaga.
Juan Pedro Hernandez, associate in the Retail Leasing team of Savills Aguirre Newman, which advised M&S on the Malaga site, said: “The latest deal with M&S is testament to the fact that Spain remains a strong choice with international brands looking to expand out of their home territory. The commitment to both out of town retail and high street shows that M&S is further building on its popularity amongst consumers in Andalucía.”
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