Britain's M&S says must modernise urgently to survive

M&S stores in Shrewsbury and Telford have not yet been named as one of 100 set for closure by 2022

"These changes come with short term costs which are reflected in todays results".

It is just one of a few United Kingdom high street giants who have announced store closures and job cuts.

Marks & Spencer is the latest high street retailer set for radical restructuring.

The department store group attributed this decline to the decrease in Food gross margin as it announced its full-year results for the 52 weeks on Wednesday morning.

M&S recently announced the next tranche of United Kingdom stores proposed for closure or set to close as it reshapes its United Kingdom store estate with plans to take at least a third of sales online.

M&S shares - down 7% in the year to date and the biggest fallers on the FTSE 100 on Tuesday - rose 6% in early trading on hopes the worst is behind the 134-year-old retailer.

Food revenue increased 3.9% as M&S opened 62 new Simply Food stores.

Total UK sales grew 1.8 percent to 9,611.0 million pounds as UK costs were up 1.8 percent during the year due to costs of new space, inflation and channel shift offset by efficiencies and lower incentive costs.

The retailer's troubled clothing arm saw like-for-like sales fall by 1.9 per cent in the year. Announcing the annual results, he said events in the retail market, where household names are struggling or closing, had convinced him M&S needed to speed up its efforts.

"These, together with a challenging United Kingdom consumer market, mean that we have to modernise our business to ensure we are competitive and reignite our culture".

It is taking an axe to its store estate in the face of continued migration of clothing and home online, the development of global competition, the growth of home delivery in food and the march of the discounters.

"And we're concentrating on tackling the culture of the business, making M&S a faster, lower cost and more commercial digital business". Various other issues need to be urgently addressed, including the supply chains in both Clothing & Home and in Food requiring significant upgrades, its online capability being behind the best of its competitors and its sluggish website.

Rowe said it was targeting sustainable, profitable growth in three to five years time.

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