M&Co eyes up expansion as annual profits climb

Value fashion retailer M&Co is set to open up to 75 new stores across the UK over the next five years, as its annual sales and profits continue to climb.

M&Co shares its ambitious expansion plans after its parent company, Mackays Stores Group, revealed annual profits had increased by 6 million pounds for the year to February 2017. The fashion chain, which currently counts a store network of close to 300 locations, is one of the largest privately owned fashion companies in the UK.

M&Co strong results were attributed to recent store refurbishments, investments in new technology, as well as new advertising campaigns which led a 37 percent increase in operating profits as well as strong e-commerce growth. The value fashion retailer is said to have built the best foundations for further long-term growth, despite facing difficult challenges on the high street.

"The high street is still a challenging environment, with high business rates, cost inflation, and international currency fluctuations denting our buying power with suppliers," said Andy McGeoch, chief executive of M&Co to the Scotsman. "However, we will continue to invest in refreshing the appearance of our stores, with over half now having benefited from refits. Our core strategy of taking prime positions in market towns continues. Our first-half results, in the current financial year, are showing further positive progress in like-for-like sales."

The value fashion retailer aims to open 60 to 75 new store across the country by 2022. The new store openings, which will be located in smaller towns, are likely to help bolster their local high streets. M&Co opened a total of 14 news stores last year and closed 8 loss-making shops.

Photo: M&Co fall 17 lookbook