China and India make room for M&S

Marks & Spencer has set its sights on conquering China by launching a long-term business in China with the first store opening planned for its next financial year. The retailer is planning to establish a wholly-owned business in China, using its existing presence in the Hong Kong and Taiwanese markets as a platform.

Chief executive Stuart Rose has named international expansion as one of the company's key priorities. The launch in China is just part of Rose's ambitious plans to grow the international business to 15-20% within the next five years. Last year it generated sales of €867 million.

"India is an equally exciting long term opportunity and a market where we have been trading for 6 years. We are looking to accelerate the pace of growth in this fast developing economy over the next few years," Rose said. He claimed that the retail market "feels a bit tougher at the moment" but said that the group was well-positioned for the future.

M&S's international business comprises 257 stores in 36 countries and the company has also identified Central and Eastern Europe as offering substantial opportunities for growth.