After the Foreign Investment Promotion Board (FIPB) had allowed Marks and Spencer an induction of 51 per cent foreign direct investment (FDI) for single-brand retail trading in the country, the UK-based retailer has decided to conclude its six-year-old franchisee deal with Planet Retail. According to the company, it is an effort to focus exclusively on the joint venture with Reliance Retail.
As part of the strategy, Marks and Spencer Reliance India Private Ltd, the joint company floated by M&S and Reliance, will take over the 14 existing M&S franchisee stores operated by the Gurgaon-based Planet Retail.
“The JV is looking at taking over the existing franchisee stores that we have with Planet Retail. This will be a staggered approach, and in due course of time the franchisee agreement with Planet Retail will come to an end,” said Mark Ashman, CEO, Marks and Spencer Reliance India Private Ltd.
The company is also aiming to increase sourcing from India. “In the next five years, we are looking at sourcing around 70 per cent of our products from India. This is a critical part of our strategy which will give us a price-competitive advantage,” Ashman said.