Marks & Spencer Group PLC (LON:MKS) has begun talks with its franchise partner Al-Futtaim for the potential purchase and franchising of the UK firm’s retail business in Hong Kong and Macau.
In a statement on the FTSE 100 listed group’s corporate website, M&S said if the discussions conclude successfully, Al-Futtaim would become the new sole franchisee for M&S in Hong Kong and Macau.
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It pointed out that Al-Futtaim has worked in partnership with M&S since 1998 when it opened the first M&S store in Dubai, and currently operates 43 M&S stores across seven markets in the Middle East, as well as in Singapore and Malaysia.
Most recently, Al-Futtaim extended the reach of M&S's chilled food to three markets, and will shortly be opening the first standalone M&S Food store in the Middle East, the statement added.
M&S said the talks follow the strategic review of its international business late last year, following which it decided to have a greater focus on its established franchise and joint venture partnerships and operate with fewer wholly-owned markets.
M&S International Director Paul Friston said: “With significant scale and retail expertise in the region, we are looking forward to discussing the potential extension of our partnership to Hong Kong and Macau as we continue to grow and develop our business together."