ROMANIA: Marks & Spencer Food brand to remain on the local market after all | Progresiv

British retailer Marks & Spencer (M & S) announced the signing of a franchise partnership with the Voici La Mode group, through which they will take over three of the six M & S stores in our country, including Plaza Romania, where the food concept is implemented. The rest of the locations - Iasi, Mega Mall Bucharest and City Park Constanta - will be closed this autumn, according to the initial plan. The two companies did not provide any information about the transaction value.

The decision to give up the business in Romania and other markets globally was taken at the end of last year as part of a process of eliminating locations fully owned by the retailer.

"Considering the comprehensive analysis of the group's international activity, we have carried out a thorough evaluation of our activity in Romania and the long-term growth opportunities for Marks & Spencer in the market. Our analysis showed that in the last five years we have had great difficulties in reaching the profitability threshold and we can no longer continue our activity in Romania. It is never easy to propose changes that affect our employees and we will listen carefully to their views in the consultation process on our proposals" said at the time Jonathan Glenister, regional director for Europe, China and India within Marks & Spencer. In 2015, the company reported a loss of about 2 million euros, with a turnover of 7.2 million euros, according to data published by the Ministry of Finance.

At this point, the transaction is on the last hundred meters, with final talks between the owners of the commercial premises and the operational preparation for the transfer. Meanwhile, the three locations - Plaza Romania, Bucharest Mall and Feeria (Baneasa Shopping City) - will continue to function normally.

The British entered the fashion market in Romania 16 years ago and two years ago they opened its first grocery store.