As a Yorkshire M&S gets set to close, is this the end of the department store as we know it?

Both Marks & Spencer and Debenhams announced yesterday that they are undertaking major restructuring of the businesses which will affect a total of 600 staff across the two companies.

Directors at both retailers admitted that the decision had been taken to overhaul the operations due to the changing shopping habits of consumers.

Marks & Spencer is planning to close six stores - including the Monks Cross site on the outskirts of York - following a review of its estate in a move that will impact 380 staff.

Alongside the Monks Cross outlet, the stores earmarked for closure are in Portsmouth, Slough, Warrington, Wokingham and Worksop.

The retail giant said the proposal, part of a five-year programme, is aimed at better meeting the “changing needs of customers”. Figures released today show that internet spending has leapt by more than a quarter in the last two years. Card spending online reached £154bn in the UK last year, averaging £422m a day, according to the UK Cards Association.

Marks & Spencer’s chief executive, Steve Rowe, said: “Our customers’ shopping habits are changing. We will open new stores, some will reduce in size, some will move, some will close and others will convert to food-only.”

He added: “It is our intention that nobody leaves M&S and we will work as hard as possible to ensure that we can deliver against this promise.”

And the new boss of Debenhams unveiled plans to close 11 warehouses and put up to 10 stores under review, in a move impacting at least 220 jobs.

Sergio Bucher, who took over as the chief executive in October, outlined plans to shut one of its three distribution centres run by DHL, 10 smaller in-house warehouses and potentially axe up to 10 of its 176 stores in the next five years. Details of the revamp at Debenhams follow a strategy review by Mr Bucher, a former Amazon fashion chief who was brought in last autumn to replace previous boss Michael Sharp.

He said he wants to de-clutter stores after customers complained it was like a “treasure hunt” shopping in some branches, while also adding more in-store beauty makeovers, including nail and blow dry bars, as well as a possible beauty services at customers’ homes.

The DHL warehouse 
employs 220 staff and will shut in two years, but Debenhams 
hopes to redeploy many staff affected by the smaller warehouse closures.

The group announced a 6.4 per cent drop in pre-tax profits to £87.8m for the six months to March 4. It is hoped DHL will also seek to redeploy many employees affected by the closure of the Lodge Farm distribution centre in Northamptonshire.

Mr Bucher’s turnaround will also see the group cull in-house brands and leave some international markets, while also shifting about 2,000 staff to customer-facing roles as part of a drive to lure shoppers back to its stores. This will see the group offer customers experiences as it battles against a wider trend to switch spending away from clothes towards eating out and holidays.

Meanwhile, Marks & Spencer confirmed it would open 36 new stores over the next six months as part of previously announced plans, a move that will create over 1,400 jobs. The new outlets include 34 food-only chains.