M&S enters joint venture

Marks and Spencer Group plc (Marks & Spencer) has acquired 50 per cent of Marks & Spencer Marinopoulos BV which operates 38 Marks & Spencer stores in Greece, a number of Balkan states, including Romania and Bulgaria, and Switzerland for €50 million cash (£38 million). The joint venture plans to open up to 50 new stores in these markets over the next few years.

This announcement is in line with Marks & Spencer’s plans to invest in its existing franchise partners where it will facilitate a faster pace of growth and greater operating efficiency. Marks & Spencer plans to grow its international business to 15-20 per cent of Group revenues within the next five years.

The Marinopoulos Group, one of Greece’s leading private sector companies, has been a partner of Marks & Spencer for 30 years and has exclusive rights to operate Marks & Spencer stores in Greece, Romania, Bulgaria, Serbia, Croatia, Slovenia and Switzerland under a franchise agreement. It also has rights to operate in Austria, Bosnia and Herzegovina, the former Yugoslav Republic of Macedonia, Albania and Montenegro where, currently, there are no Marks & Spencer stores. Marks & Spencer has purchased 50 per cent of the share capital of Marks & Spencer Marinopoulos BV from Marinopoulos Holding SARL, through its wholly-owned subsidiary Marks and Spencer International Holdings Limited.

Carl Leaver, Director of International Business, Marks & Spencer said: "We have an exciting opportunity to open many more Marks & Spencer stores in Greece and the Balkans and our joint venture with Marinopoulos will mean we can really put M&S on the map in this part of the world. In Greece, we already have a solid platform to build on and there is a growing demand for great quality, good value M&S products in markets like Romania and Bulgaria. We have worked with Marinopoulos for over 30 years and their retail expertise and local knowledge make them the ideal partner for us."

Stefanos Marinopoulos said: "We are very happy to have concluded this joint venture agreement with Marks & Spencer, which complements our model of development with major international retailers in our region. We strongly believe in the growth potential of Marks & Spencer as a leader in clothing and home products."