The UK-based Marks & Spencer (M&S), which is present in India through a franchise agreement with Planet Retail, might consider closing down the deal as the company has recently signed a joint venture with Reliance Retail to set up large-format stores in India.
In a statement made to media, a source close to the developments, on condition of anonymity, said: “For the time being, we will continue with our existing agreement, but as and when we have a bigger store in the same city, we will call off the deal with Planet Retail.” However, M&S will offer its employees the option of joining the bigger stores.
According to Mark Ashman, CEO, M&S, India, “With Reliance Retail, we are planning to have stores of around 20,000 square feet in locations near to our current franchisee stores. We will absorb the employees in our new stores.”
M&S currently operates 14 franchisee stores in India, with each store covering an approximate area of 3,000 square feet. The store in Delhi is around 20,000 square feet.