There's No Place Like Home

Marks & Spencer, the London-based retailer, plans to open two large-scale home stores in a bid to plug a hole in the market it has identified, says Roger Holmes, managing director of U.K. retail.

According to Holmes, M&S has identified a gap in the middle market of the home and furniture sector. The stores will likely be positioned between the value-oriented ranges of Ikea Intl. (Denmark furniture retailer) and the more upscale ranges of U.K. retailer Heal's.

The 70,000-square-foot, stand-alone “Home Stores” will open over the next two years and sell only M&S homewares and furniture ranges. The strategy reflects the approach adopted by the retailer's Simply Food stores, which sell nothing but M&S food. The Home Stores will feature an enlarged homewares range, which is to be launched in M&S's larger stores this fall. M&S is currently securing sites for the stores.

Holmes says the retailer still has a relatively small market share in the homewares and furniture sector and that there is “substantial potential” for growth.

The new stores will include segmented ranges of products to cater for different sections of M&S's customer base, a tactic that has worked well in clothing, says Holmes. The three key ranges will be Classic Country, Classic Townhouse and Contemporary Modern.

“The segmented approach will bring a broader offer to the customer,” he says.

In addition, M&S ceo Luc Vandevelde says that the retailer remains in negotiations with two buyers for its Kings Super Markets chain in the U.S. He says an announcement will be made soon, but added that M&S is “still struggling” to finalize the deal.

Marks & Spencer is selling off operations around the globe to salvage its 300 or so Marks & Spencer stores in the U.K. The stores sell mid-priced clothing, food and household items. Marks & Spencer has sold its more than 220 Brooks Brothers clothing stores in the U.S. and Asia, and plans to sell its 25-store Kings Super Markets chain in New Jersey. Marks & Spencer is also closing its catalog business.