M&S commences franchise talks for Hong Kong, Macau biz

Marks & Spencer (M&S) has initiated talks with its long-established franchise partner Al-Futtaim, for the potential purchase and franchising of M&S’s owned retail business in Hong Kong and Macau. The company said in a statement that conclusion to these discussions would see Al-Futtaim become the new sole franchisee for M&S in Hong Kong and Macau.

“In November we set out our plans to create a more sustainable, profitable and customer-centric International business for M&S by focussing on our established partnerships. With significant scale and retail expertise in the region, we are looking forward to discussing the potential extension of our partnership to Hong Kong and Macau as we continue to grow and develop our business together,” said Paul Friston, Marks & Spencer’s International Director in the company announcement.

M&S in talks with Al-Futtaim to offload Hong Kong, Macau biz

The talks, M&S added, follow the company’s strategic review of its International business in November 2016, where M&S proposed to have a greater focus on its established franchise and joint venture partnerships and operate with fewer wholly-owned markets. In Hong Kong, where M&S has traded since 1988, the business is profitable, has strong brand awareness, an established store estate of 27 stores and a loyal customer base.

Al-Futtaim has worked in partnership with M&S since 1998 when it opened the first M&S store in Dubai. Today, Al-Futtaim operates 43 Marks & Spencer stores across seven markets in the Middle East, as well as in Singapore and Malaysia. Most recently Al-Futtaim has extended the reach of M&S’s popular chilled food to three markets, and will shortly be opening the first standalone M&S Food store in the Middle East.

Commenting on the development, Stephen Rayfield, Senior Managing Director – Fashion & Lifestyle Division at Al-Futtaim added: “As long-term partners of Marks & Spencer, I’m delighted that we are now working together to explore the potential expansion of our partnership to Hong Kong and Macau.”

Picture:Facebook/M&S