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Marks & Spencer confirms sale of Hong Kong and Macau businesses
Marks & Spencer has confirmed the sale and franchise of its retail business in Hong Kong and Macau to its long-established franchise partner Al-Futtaim.
Following the sale, which completed on Saturday, Al-Futtaim - which has worked in partnership with M&S since it opened its first Dubai store in 1998 - becomes the new sole franchisee for M&S in Hong Kong and Macau. Following the purchase of 27 M&S stores in Hong Kong and Macau, Al-Futtaim now operates 72 Marks & Spencer stores across 11 markets in Asia and the Middle East.
Paul Friston, international director at M&S, said: "We have substantially reshaped our International business, which has improved profitability and positioned us for growth. As one of the world's leading retail operators, with strong logistics capabilities and local expertise, Al-Futtaim is the ideal partner for us to develop and grow our business in Hong Kong and Macau."
Stephen Rayfield, vice president of M&S and sports & lifestyle division at Al-Futtaim, said: "We are delighted to strengthen our long-term partnership with M&S and expand Al-Futtaim's international footprint to Hong Kong and Macau. Al-Futtaim looks forward to building on our solid foundations as we continue to enrich our customers' lives and aspirations through the provision of quality products and services in Hong Kong and Macau."
Following a strategic review of its international business in November 2016, M&S proposed to have a greater focus on its established franchise and joint venture partnerships and operate with fewer wholly-owned markets.
At 0810 GMT, the shares were up 0.7% to 316.90p.