Marks & Spencer to exit Philippine market by May

By Alexandria Grace C. Magno, Reporter

STORES SPECIALISTS, INC. (SSI), a wholly owned subsidiary of SSI Group, Inc., said it will cease operating Marks & Spencer (M&S) stores in the Philippines this year, with the final day of operations set for May 2.

“This has not been an easy decision,” the company said in a disclosure on Wednesday. “Building Marks & Spencer in the Philippines has been a meaningful and rewarding chapter for our organization. We are deeply grateful to our loyal customers, dedicated employees, and partners who have supported the brand through the decades,” it added.

Marks & Spencer is a British retailer that sells food, clothing, and homeware worldwide.

In the Philippines, Marks & Spencer is operated by Rustan Marketing Specialists, Inc., part of Tantoco-led listed specialty retailer SSI Group.

Under SSI’s stewardship, Marks & Spencer opened its first Philippine store nearly 40 years ago.

SSI said changing consumer tastes and shopping habits prompted the company to redirect resources toward brands aligned with current and future market trends, describing the move as a necessary step for growth.

“Retail is constantly transforming. Change is inevitable, tastes evolve, and therefore so should we. We remain committed to the constant strengthening of our portfolio and delivering experiences that resonate with today’s consumers,” the company said.

The company added that it will coordinate with employees, partners, and stakeholders to ensure an orderly wind-down of operations, with further details on timelines, promotions, and customer notices leading up to May 2, 2026, to be announced.

STORE CLOSURES AND DISCOUNTING
Before the announcement, a series of store closures and extended discounting across the Philippines had fueled speculation among customers and market watchers that the retailer was preparing to exit the country.

Several branches, including Mall of Asia, TriNoma, Eastwood, and Robinsons Manila — which closed on Jan. 5 — have been marked as “permanently closed,” while the Ayala Center Cebu branch is listed as “temporarily closed.”

Some customers also noted that many remaining branches are offering discounts of up to 70% on selected items. These promotions are available to both in-store customers and loyalty members, although certain items may be limited or unavailable.

Despite multiple closures, branches listed on the company’s website — including Alabang Town Center, Central Square, Bonifacio High Street, Gateway Mall, Glorietta 4, Greenbelt 5, Power Plant Mall, Rockwell, SM Aura Premier, SM City North EDSA, Shangri-La, SM Megamall Fashion Hall, Paseo de Santa Rosa, Abreeza Mall in Davao, and SM Lanang Premier — remained operational as of Wednesday.

ANALYSTS SEE PORTFOLIO RATIONALIZATION
F. Yap Securities, Inc. investment analyst Marky Carunungan said SSI’s move appears to reflect portfolio rationalization rather than financial distress.

“The discounts are consistent with a confirmed exit rather than an earnings patch. Marks & Spencer is classified under SSI’s casual segment, which declined 2.9% in 9M25. However, SSI does not disclose brand-level data, so we cannot attribute that segment decline specifically to Marks & Spencer,” he said in a Viber message.

Mr. Carunungan added that the markdowns are typical liquidation measures ahead of the planned May 2026 closure rather than a response to weak third-quarter (Q3) results.

“M&S sits within the casual category, which accounts for roughly 14-15% of group sales. While there may be short-term exit costs and some revenue impact, SSI remains diversified with P20.3 billion in 9M25 sales across 103 brands,” he added.

In November, SSI Group reported a 64.99% decline in Q3 attributable net income to P188.08 million from P537.18 million a year earlier, as weaker sales in its luxury, bridge, and casual wear segments weighed on results.

Revenue for the three months ending September slipped by 0.93% to P6.9 billion, while net sales declined 0.9% to P6.88 billion.

The company attributed the decline mainly to lower sales in the luxury and bridge segments, which fell 3.8%, and casual wear, which declined 2.9%, reflecting reduced discretionary spending in the high-end market during the quarter.

SSI reported operating 613 stores nationwide across 103 brands as of end-September, after opening 17 and closing two stores during the third quarter.

Meanwhile, Unicapital Securities Equity Research Analyst Jeri R. Alfonso said developments leading up to the announcement had indicated a possible market exit.

“In the case of Marks & Spencer Philippines, stores have been slowly closing nationwide, and its social media presence does not appear heavily invested in marketing as recent content seems largely centered on promoting discounts,” she said in a Viber message.

“These early signs already suggested that the Philippines might be one of the markets Marks & Spencer was planning to leave, and true enough, SSI has since confirmed that Marks & Spencer will officially exit the country in May this year,” Ms. Alfonso added.

GLOBAL STRATEGY RESET
In several press releases, Marks & Spencer outlined plans to reset priorities for its international business to strengthen long-term growth.

In February last year, the retailer strengthened its global leadership team with three senior appointments, including a new international partnerships director, commercial director, and managing director of Marks & Spencer India, as part of its reset and future growth plan.

Marks & Spencer reported an 11.58% decline in international sales to £255.8 million in the first half of 2025 from £289.3 million in 2024, citing lower first-quarter franchise shipments and reduced clearance sales in owned markets amid value investments.

“Having reset the International business to reshape Marks & Spencer for global growth, we’re focusing on bigger, better partnerships, which enable us to bring the best of Marks & Spencer to the world,” Marks & Spencer Managing Director of International Mark Lemming said during the signing of a partnership with a B2B logistics solutions provider in November last year.

According to its website, Marks & Spencer operates in more than 70 international markets with over 380 stores overseas.

On Tuesday, SSI Group shares fell by two centavos, or 0.74%, to close at P2.68.