Marks & Spencer sells Hong Kong business to franchise partner
Marks & Spencer has sold its business in Hong Kong and Macau to its long-term franchise partner Al-Futtaim. The deal, which completed on 30 December, will result in Al-Futtaim being the new sole franchisee for M&S in the two regions.
Al-Futtaim has been a partner of M&S since 1998 when it opened Dubai’s first M&S store. Following the purchase of the 27 Marks & Spencer stores in Hong Kong and Macau, the business now operates 72 Marks & Spencer stores across 11 markets in Asia and the Middle East.
Paul Friston, Marks & Spencer’s International Director, said the retailer had "substantially reshaped our International business, which has improved profitability and positioned us for growth. As one of the world’s leading retail operators, with strong logistics capabilities and local expertise, Al-Futtaim is the ideal partner for us to develop and grow our business in Hong Kong and Macau.”
Stephen Rayfield, Vice President M&S and Sports & Lifestyle Division at Al-Futtaim added: “We are delighted to strengthen our long-term partnership with M&S and expand Al-Futtaim’s international footprint to Hong Kong and Macau."
The sale follows M&S's strategic review of its international operations which it said would now focus on franchise or joint venture arrangements with fewer wholly owned stores.
The M&S sourcing business, based in Hong Kong, is not part of the deal and remains wholly owned by the retailer.
