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The Markets
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Retail

Shares in Marks and Spencer Group PLC shares drop as it warns on rising costs

Energy costs were £40mln higher than planned and without support, it faced possible headwinds of more than £100mln next year

Shares in Marks and Spencer Group PLC (LSE:MKS) dropped sharply after it warned of cost pressures and unveiled plans to cut more stores.

In a presentation to institutional investors, it said it would cut the number of large clothing and homewares stores by 67 by 2028 to take the total to 180.

And in a plan to concentrate on food, it will open 104 Simply Food stores to take the number to 420.

On costs, it said it had seen wage inflation of around 7% and it expected more to come in 2023.

Energy costs were £40mln higher than planned and without support, it faced possible headwinds of more than £100mln next year.

It said food cost of goods was already under pressure, while dollar pressure on clothing was yet to come.

The shares fell 5% to 93.12p having hit 92p earlier in the session.

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