M&S in store manager cull

The retailer has begun a consultation with affected staff after a review of its management structures found “inconsistent” structures across different regions with overlapping management roles.

The cull includes 115 store, commercial and operations managers, 182 section managers and 54 visual managers, who prepare store displays.

M&S said: “M&S is transforming and this is a tough but necessary decision to take to ensure our stores support the future of the business and provide the best service for our customers.”

Consultation documents showed that while sales activity across the chain had dropped 7.5 per cent over the past two years, management costs had risen.

Food retail rivals such as Tesco and Sainsbury’s have already announced major store management cuts as a fierce grocery price war takes its toll.

Earlier this year, M&S said it would close one in three clothing and home branches – about 100 outlets – by 2022, as part of a five-year turnaround plan by chief executive Steve Rowe. It is looking to reduce costs by £350million over the next three years.

As well as a smaller high street presence, M&S is revamping its food and clothing supply chains, including closing its distribution centre near Warrington, and speeding up its website.

Its annual pre-tax profit plunged 62 per cent to £66.8million after a £514.1million restructuring bill that included a £321.1million charge for its store closure programme.

Last week, Rowe and chairman Archie Norman refused to rule out more closures as investors were told the chain could disappear if it failed to make changes.

Norman admitted it had not been as ruthless as fashion retail rival Next in closing older stores as shopping habits changed.

Norman said the business was “on a burning platform” and “did not have a God-given right to exist”.

He added: “We are grasping a nettle that should have been grasped many, many years ago. We have got to get to the point where we have a modern estate and we have to go through the pain barrier to get there.”