Marks & Spencer (M&S) has confirmed it is slowing down its overseas expansion strategy in China, due to the country's present economic woes. M&S had hoped to profit from its burgeoning, affluent middle classes, however the faltering economy has meant that the pace of its expansion has been slower than expected; and even though they have not seen the same dramatic slowdown as some other firms, especially the luxury brands, it is keen to avoid making the same mistake as Tesco, which grew too quickly in China. The company said on Thursday that sales growth for China was expected to slow this year by up to 10 per cent compared with last year, while operating margins are likely to be hit by a drop in
Marks & Spencer (M&S) has confirmed it is slowing down its overseas expansion strategy in China, due to the country's present economic woes. M&S had hoped to profit from its burgeoning, affluent middle classes, however the faltering economy has meant that the pace of its expansion has been slower than expected; and even though they have not seen the same dramatic slowdown as some other firms, especially the luxury brands, it is keen to avoid making the same mistake as Tesco, which grew too quickly in China. However, M&S also believe the slowdown will create some opportunities for the firm in the near future, in terms of freeing up prime retail space in China.