By Alexandria Grace C. Magno, Reporter
Marks & Spencer (M&S) will resume operations within the Philippines under a franchise agreement with Indonesian retail group PT Mitra Adiperkasa Tbk (MAP), marking a return to the market after its earlier exit under a previous operator.
Under the deal, MAP will take over M&S operations within the country and relaunch the brand later this yr, starting with its first store at Glorietta in Makati.
The rollout will include M&S Fashion, Home & Beauty and Food categories across physical stores and digital channels.
The Philippines is a “fast-growing market” and the group goals to expand the brand while improving the retail experience for local consumers, MAP Fashion Chief Executive Officer Sameer Prasad said in a press release late Monday.
“Taking up the M&S business within the Philippines marks a crucial milestone for MAP Fashion and reflects our commitment to growing iconic global brands across Southeast Asia,” he added.
MAP operates greater than 150 international brands, including Zara, Sephora, Foot Locker, Starbucks, Subway and M&S.
It had greater than 4,000 stores across greater than 80 cities in Indonesia as of March, making it one among the region’s biggest retail operators.
M&S International Managing Director Mark Lemming said the partnership builds on MAP’s established track record in operating the brand in Southeast Asia.
“Having played a pivotal role in driving our growth in Indonesia, MAP’s deep local expertise gives us confidence as we speed up our growth plans in Southeast Asia,” he said.
“We all know there is powerful demand for the M&S brand within the Philippines, and we’re excited to reopen our stores and online channels later this yr,” he added.
M&S is a British retailer offering food, clothing, home and wonder products through company-owned stores, franchise partners and e-commerce platforms in multiple global markets.
The brand has been present within the Philippines since 1984 but earlier this yr announced plans to transition to a brand new franchise partner as a part of a broader regional restructuring of its Southeast Asian operations.
It was previously operated within the country by Rustan Marketing Specialists, Inc., a unit of SSI Group, Inc., which first introduced the brand nearly 4 a long time ago. SSI ended M&S operations in May following the transition.
Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said M&S’s return may gain advantage from MAP’s regional retail scale and operating experience, which could help improve execution across store operations, supply chain management and localization.
“This increases the probability that the relaunch can be more strategic and sustainable relatively than simply a re-entry driven by brand recognition alone,” he told BusinessWorld said via Viber.
Mr. Arce added that the Philippine retail environment has change into more competitive, with stronger digital adoption, faster product cycles and more price-sensitive consumers shaping demand.
“The market is more digital and more value-driven. Physical stores alone are not any longer enough,” he said, adding that an omnichannel strategy would likely be needed to stay competitive.