M&S To End Franchisee Agreement With Planet Retail

Economic Times:

UK retail major Marks and Spencer plans to exit from its six-year old franchisee deal with Planet Retail as part of the company’s effort to focus exclusively on the joint venture with Reliance Retail.

As part of the strategy, Marks and Spencer Reliance India Private Ltd, the joint company floated by M&S and Reliance, will take over the 14 existing franchisee stores of Gurgaon-based Planet Retail in the country.

“The JV is looking at taking over the existing franchisee stores that we have with Planet Retail. While this will be a staggered approach, and in due course of time the franchisee agreement with Planet Retail will come to an end,” Marks and Spencer Reliance India Private Ltd Chief Executive Officer Mark Ashman said.

M&S is holding discussion with Planet Retail on the modalities of eventually managing the 14 stores. The original franchisee agreement between M&S and Planet Retail had been signed back in 2001-02. Read more.