Marks & Spencer in talks with Al-Futtaim to sell its Hong Kong, Macau businesses
Retailer says it would focus on established franchise partnerships and operate fewer stores
British multinational retailer Marks & Spencer (M&S) said on Wednesday that it had begun talks with one of its long-time partners Al-Futtaim, to sell the franchise of its retail business in Hong Kong and Macau, a move it expects to create a more “profitable and customer-centric International business”.
The talks followed the British retailer’s strategic review of its international business in November last year that led to the closure of numerous stores in 10 international markets including China. It would also increase its focus on the established franchise and joint venture partnerships and operate fewer stores.
The discussions between the two companies were expected to be completed within several months, but it would be business as usual for M&S’s 27 Hong Kong stores and two in Macau, the company said in a statement.
Al-Futtaim, a key partner to M&S in Asia and the Middle East since 1998, currently operates 43 stores in the Middle East, Singapore and Malaysia.
“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, M&S’ international director.