Marks & Spencer may open stores in India, Old Europe

Mumbai: Marks & Spencer, the British clothing-to-food retailer, is considering the possibility of expanding into `Old Europe'', and also into India, reports quoting Stuart Rose, its chief executive, said.

"We are not short of people who want to open M&S stores," Rose told a news agency, adding, "Old Europe is an opportunity and we are looking at the sub-continent of India."

Marks and Spencer has pulled further away from a crisis suffered three years ago and is enjoying record sales and strong profits. M&S, Britain''s largest clothes retailer, however, said it had no plans to revalue its property portfolio but he expected its worth would be "substantially higher" than the 3.6 billion pounds ($7.1 billion) it was valued at three years ago.

Net profit on an year-on-year basis climbed 26.8 per cent to 659.9 million pounds (966.7 million euros, $1.301 billion) in the year to March 31, Marks and Spencer said in an official earnings release.

Sales increased for a seventh quarter running, as customers flocked to its stores and website to purchase goods ranging from men''s suits, women''s toiletries, fresh fruit and toys.

M&S, which is increasingly selling goods on-line and fashioning itself as an eco-friendly company, saw a seventh successive quarter of growth after seven straight quarters of decline.

The group which trades from about 460 stores in Britain and 150 abroad, said that its staff would share a record bonus of 91 million pounds following its latest profits.

Marks and Spencer, a leading high-street name in Britain, endured falling profits and drastic cutbacks earlier this decade because its long-standing formula of providing reliable middle-of-the-road fashion at mid-range prices had become disconnected from its customer base.

That led three years ago to a takeover bid worth 9.1 billion pounds from British tycoon Philip Green, who promised to shake up the group. But Marks fended off the approach worth 400 pence a share and put Rose in the hot seat.

Marks and Spencer has increased its spending on supply chain and technology from £39m last year to £114m in 2007, according to the retailer''s financial results. The increase in technology spend is part of a wider modernisation programme which saw the firm''s capital expenditure rise to £792.4m this year from £337.7m last year.

Supply chain capital expenditure reflects investment made in new distribution centres in food and general merchandise. The increase in technology spending includes new financial systems as well as a major project to replace tills.

The company is also working on upgrading its in-store ordering system to use a single integrated order platform across all channels of stores, telephones and online.