The retailer has taken a 51 per cent stake in the enterprise with COMS, which runs 13 shops in the Czech Republic, Lithuania, Latvia and Slovakia. Stores will also open in Estonia under the new deal.
M&S intends to generate up to 20 per cent of group revenues from international operations within five years.
M&S director of international business Carl Leaver said: “There is a great opportunity to open many more stores across central and Eastern Europe and grow a real presence in the region. We have worked with the COMS team since 1996 and their retail expertise and local knowledge make them the ideal partner.”
M&S is paying €13.6 million (£10.6 million) in cash for its stake in the venture. There is a deferred consideration of up to €5.2 million (£4.1 million) dependent on business performance.
Internationalisation is a growing trend among big store groups as they face a mature domestic market. Yesterday, Next revealed it had created a central European joint venture with its local franchise partner and will open shops there and in Scandinavia.
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