Suffering ongoing pressure from the Euro zone’s economic woes, UK-based retailer Marks & Spencer is increasing its focus on expanding in its existing markets outside Europe.

One of those markets is China, where it plans to double the number its stores within the next 12 months. M&S has eight stores after four years operating in China.

In its home country, where it has 731 stores, M&S saw 1.6 per cent drop in footfall due to the impact of inflation on consumer’s shopping. Though inflation eased in early 2012, consumers have not felt the full benefit, as incomes were hit by pay freezes, reduced hours and cancelled overtime.

While analysts say it is too early to tell if the expansion will spell success in China, some see a drawback in M&S being positioned to Chinese as a middle market brand.

“The problem is that middle classes don’t really exist in China. Anyone who would typically fall into this category doesn’t want to stay here but wants to move up the social ladder and become very wealthy. Then they want designer labels,” said a British expat in China.

However, this doesn’t seem to deter other middle market European brands such as H&M and Zara for aiming bigger slice of China’s market.

“We now have quite a lot of familiar UK names in the shopping districts. Retailers are no longer dipping their toes in the water but are aggressively expanding across China as part of a long-term commitment,” said Mark Andress, a British software designer working in Shanghai.

Recently, M&S opened a 4500sqm flagship store at Golden Bell Plaza on Huaihai Rd in Shanghai.

M&S, with 387 international stores, also plans to expand in markets including Russia, India and the Middle East.

GB