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Marks & Spencer franchise stores to open in India

A franchisee of UK retailer Marks & Spencer Plc plans soon to open two stores in India, a product of the struggling British department store's moves to boost sagging earnings by licensing its brand name. The move comes as Marks & Spencer is moving to close stores it owns in other countries. M&S announced in March it was culling its European operations and selling its US businesses.

"Marks & Spencer's international platform is now really operating through a network of franchise partners," M&S spokesman Louis Hill said in London.

"We believe that by partnering with a local franchise partner, they have a strong understanding of the local market, are able to protect our brand and introduce the right products in the right environment."

In India, Hill added, "we have gone into partnership with Planet Sports India Pvt, and the first stores will open in October 2001. One will be in Delhi and one in Bombay."

Planet Sports, a company founded less than two years ago, currently operates nine stores, including seven Planet Sports outlets selling sporting goods, footwear and apparel.

It also has two Kidz Station stores selling toys, shoes and clothing.

V P Sharma, the founder of Planet Sports, said the company was considering various locations in Bombay and New Delhi as sites for stories of about 5,000 square feet, selling men's and women's apparel, lingerie and toiletries.

He denied, however, an Indian newspaper report saying an agreement had been reached to sign a three-year lease for 7,000 square feet of prime space in the Crossroads commercial complex in south Bombay.

"The Piramals (the owners) have offered us a very good location and were are actively considering the offer," Sharma said. "But it is only one of the sites we are considering. There are a few other locations in Bombay."

M&S announced in March it was pruning its European operations and selling its US businesses to concentrate on getting its core UK clothing business right.

In the last three years profits and sales at Britain's best-known retailer have sunk, and the latest quarterly sales data showed recovery still remained elusive.

In the past year re-exceptional profits fell seven per cent to £480.9 million -- well down from the record £1.2 billion achieved in 1998.

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