M&S to open 250 new international stores over the next three years

British department store group Marks & Spencer has announced

plans to expand its international division by opening 250 new stores outside the UK over the next three years.

The international growth strategy is set to be fueled by focusing on expanding M&S's food business and increasing franchise operations, with the global expansion plans being part of Marc Bolland, chief executive at M&S, scheme to increase international revenues by 25 percent and profits by 40 percent.

M&S plans on growing its presence in existing markets and increase business in its 'priority' markets of China, India, Russia, the Middle East and Western Europe, even though it is currently in the process of closing or relocating a third of its existing stores in the Shanghai area. Bolland aims to seek support from a local partner before expanding across the country.

The group is set to expanding its current Lingerie & Beauty store concept in the Middle East and India, and will be opening 10 additional stores in Saudi Arabia and 20 stores in India over the next two years. In total, M&S aims to have 100 stores in India by 2016.

Bolland told investors and analysts during a presentation on Tuesday in Paris: “Our strategy of becoming an international, multi-channel retailer is more relevant than ever before because of the strong growth potential of international markets. We are focusing on flagship stores to deliver brand presence and stand-out. We also see great opportunities in fresh Food and Lingerie & Beauty concepts.”

M&S also plans on increasing its international reach with a 'bricks & clicks' approach, by establishing flagship stores in main cities, supported by M&S food stores and a full online offer of its product range. M&S will also be expanding its food business in Western Europe and will rollout 20 stand alone food stores in Paris over the next three years and aims to introduce fresh food options to Europe via its franchised partnerships.

Steve Rowe, executive director of food, commented: “M&S food is in much demand globally. We’re putting M&S Food on the map over the next five years. Western Europe is our focus and finding the right partners and locations is vital to the success of our plan to have the optimal Food store portfolio in this time.”

M&S’s international expansion plans comes as the department store group continues to battle against competitors in its home market. Annual profits for M&S were recently surpassed by rival department store chain Next for the first time.

Planet Retail, retail data analyst firm, noted that: “all eyes will inevitably be on the performance of the UK business, particularly General Merchandise, when the business reports its full-year results next week. If the UK GM business (particularly womenswear) does not show any sign of recovery, the International Division will get scant attention.”