Marks & Spencer, the big UK retailer that has been battling Brexit costs and delays for months, said on Thursday it would close its 11 food stores in France.
The stores were stocked with products made in Northampton, near central England, and shipped daily across the Channel. Earlier this year, once Britain began its new trading relationship with the European Union, store shelves in Paris emptied as new customs and tariff controls disrupted the supply chain from the retailer.
“The complexities of the supply chain in place following the UK’s exit from the European Union now make it nearly impossible for us to serve fresh and chilled products to customers at the high standards they expect.” Paul Friston, the company’s managing director for international affairs, said in a statement Thursday.
In a store near the Bastille in Paris, it had become common to see bare refrigeration units devoid of Stilton cheese, British broccoli or British sandwiches that appealed to the French, as well as expatriates from across the Channel. Some of the M&S stores started adding French foods to the shelves, but import delays never eased enough to alleviate the shortages.
Rather than creating a booming free trade with the European Union and countries further afield, post-Brexit trade rules have frustrated many businesses with significant additional costs. The rule of origin requirement has forced clothing retailers to move their distribution centers to the European Union, businesses of all sizes have increased customs payments, and food producers must pay for health certificates. Supply chains have also been severely disrupted by the pandemic. Recently, the British government decided to postpone the imposition of controls on goods imported from the European Union until mid-2022.
M&S reported more than £ 16million ($ 22million) in costs for the fiscal year ending March, which included a digital tracking and tracing platform and veterinary certification costs. He said the biggest impact of Brexit was on the supply to his stores on the island of Ireland.
The stores in France which will close by the end of the year are managed by a franchise partner. Nine other stores in France, located in transport hubs and operated by another partner, will remain open, the company said. The website, which primarily sells clothing and home products, will continue to operate.
M&S had already changed the product offering in the Czech Republic due to Brexit. It stopped selling fresh and chilled foods and expanded the range of frozen products and those that can be stored at room temperature.
Brexit has been blamed for the closures, but M & S’s international operations, which include stores in India, the Middle East and Asia, have also been hampered by the pandemic. Income fell about 17% during the year through March.
The company was battling changing consumer trends long before the pandemic and was trying to restructure its business from clothing and home products to selling groceries, while closing stores and improving its shopping experience. ‘online purchase. The pandemic has forced an acceleration of this plan. Last year, the company dramatically increased the number of jobs it planned to cut to 7,000 from 950. In the end, more than 8,000 workers left its stores in Britain in March.
Liz Aldermancontributed reports.
