Store closures and deep discounting across the Philippines have raised questions about the future of Marks & Spencer’s local operations, as its long-time franchise partner begins winding down several locations.
M&S has been operating in the country for more than three decades through the Rustan’s Group of Companies, which was acquired by SSI Group last year.
In recent months, the franchisee has closed stores at TriNoma, Robinsons Manila, Marquee Mall, and Ayala Center Cebu, with additional reports of closure at the SM Mall of Asia.
Remaining stores have been offering markdowns of up to 60 per cent and buy-one-get-one promotions as inventory is cleared. In particular, at Rockwell and Greenbelt, the range of food on sale is limited, with chillers empty and wide shelves stacked with identical products.
The M&S Philippines website still lists 13 branches nationwide, including locations in Davao and Laguna, down from more than 20 stores at its peak.
The closures and heavy discounting have fuelled speculation among customers and industry observers that the retailer may be preparing to withdraw from the country.
Customers have expressed disappointment online, particularly over the potential loss of extended size ranges that are less widely available locally.
One user wrote on Reddit: “This was my mom’s favourite brand because she is on the heavy side, and they have big sizes. Although we only buy there during sales because they are pricey.”
The developments come as Marks & Spencer continues to “reset” its international operations.
In the UK, the retailer has also outlined plans to reduce its number of full-line stores from 229 to 180, with “closures, relocation to food, and relocation to another full-line store”.
“We’re focusing on bigger, better partnerships, which enable us to bring the best of M&S to the world,” said Mark Lemming, MD for international markets, M&S.
“As we continue to progress with our strategy, I remain confident in the medium and long-term opportunity for M&S to drive global growth.”
A spokesperson from M&S commented on February 26th, saying the company remains committed to the Philippines.
“After over 20 years of partnership with the SSI Group, we have made the decision to transition to a new franchise partner to support our ambitious growth plans in the region. Our contract with SSI will end in May, we thank them for their partnership.
“We look forward to sharing updates on our growth plans in due course.”
In a Facebook update published on February 25th, SSI confirmed that it will cease operating M&S stores in the Philippines, with the final day of operations on May 2.
“This has not been an easy decision,” the management said.
“Building Marks & Spencer in the Philippines has been a meaningful and rewarding chapter for our organization. We are deeply grateful to our loyal customers, dedicated employees, and partners who have supported the brand through the decades.”
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