M&S set to scale back new stores

London: Marks and Spencer is expected to become the latest retailer to scale back new store openings when it announces its full-year results this week.

Marc Bolland, chief executive, is expected to roll back aggressive growth targets he set 18 months ago, amid the consumer downturn.

Some investors and analysts are also calling for capital expenditure to be reduced, in line with the softer targets.

M&S is expected to continue with its store revamp plan — it has already said it will deliver this for £100 million (Dh580 million) less than originally planned — as well as its pledge to modernise the rump of stores untouched by former chairman and chief executive Sir Stuart Rose's overhaul.

However, it is likely to moderate store expansion in the UK from the 3 per cent space growth per annum until 2015, outlined when Bolland revealed his strategic blueprint in November 2010.

This could help cut M&S' capital expenditure, originally estimated at £900 million a year over three years. Some investors are concerned about such an expensive investment programme against a challenging economic backdrop.

— Financial Times