Marks & Spencer is planning to close 25% of its bigger stores selling clothing and homeware while opening more than 100 new Simply Food outlets, as it speeds up its turnaround plan in the face of a “difficult economic backdrop” and rising costs. M&S said the turnaround plan would not necessarily see the retailer leaving a town, but could include the closure of an older high street store, and the opening of a new outlet at an out-of-town retail park. It gave the example of Llandudno in north Wales, where such a change had already taken place. The retailer told investors it is accelerating its plan to reach a target of 180 “full-line” shops – selling its full range of food, clothing and homeware products – by early 2028, down from 247 at present. M&S said it would get rid of “lower productivity” outlets, resulting in 67 net closures of larger stores during the period, while reducing its floor space at stores selling clothing and homeware by almost a fifth. The retailer said it was doing this at a time when online purchases are rising to account for 50% of sales. At the same time, M&S intends to open 104 additional Simply Food stores, as it shifts from larger shops selling clothing and homewares to more outlets selling groceries. The company is aiming to complete its store closure and opening plans over the next five years, but said it would now try to complete the transition as quickly as possible, ideally within three years. Stuart Machin, M&S’s chief executive, said the retailer was “creating a fit for the future store estate, with shops in great locations”. He added: “We’re seeing strong performances from our recently relocated stores and this gives us the confidence to go faster in our rotation plans, whilst at the same time investing in bigger and better food stores.” In the face of the cost of living crisis, M&S said that value was becoming customers’ top priority, although the company said it was also facing “significant cost headwinds”. Soaring energy costs, rising staff wages and higher prices for food and clothing were among the challenges facing M&S and other retailers outlined by Machin in a presentation to shareholders. Machin told investors the company’s energy costs were already £40m higher than planned this year, adding that without support, it could cost more than £100m by 2023. M&S said that 80% of its energy usage comes from its stores, and it would focus on cutting the cost of refrigeration and lighting. Staffing costs have also increased by about 7%, and M&S is anticipating these will remain under pressure during 2023. The retailer upped staff pay for the second time this year in September – increasing the hourly pay of more than 40,000 staff by 2% to a minimum of £10.20 an hour from 1 October – up from £10 an hour introduced in April. Like many retailers, Marks & Spencer is also facing increased costs from suppliers for the products it sells, and said this had already been felt in the food sector. However, Machin added that the impact of higher costs for clothing it buys from its suppliers – which is priced in dollars – had yet to be felt, after the fall in the value of the pound.