What: Marks & Spencer has chosen to stay in the Philippines, shifting to a new partnership model to adapt to local market conditions.

Why it is important: M&S’s move demonstrates the resilience of established brands and the importance of local alliances in navigating competitive and evolving retail landscapes.

Marks & Spencer has reaffirmed its commitment to the Philippine market by transitioning to a new local partnership, signalling a strategic adaptation rather than withdrawal. This decision comes shortly after speculation about a potential exit, highlighting the volatility and complexity of international retail operations in Southeast Asia. By restructuring its approach, M&S aims to better align with local consumer preferences and market dynamics, leveraging the strengths of a new partner to sustain its presence. The Philippine retail sector remains attractive, with robust growth and significant investments from major players, making it a competitive environment for global brands. M&S’s experience reflects the broader challenges and opportunities faced by international retailers, where resilience and flexibility are essential for long-term success. The move also mirrors the company’s previous strategy shifts in other markets, demonstrating a willingness to evolve operational models in response to changing conditions and to maintain relevance in diverse retail landscapes.

IADS Notes: M&S’s decision to remain in the Philippines with a new local partner in February 2026 (Inside Retail) marks a significant pivot in its international strategy, coming just days after reports suggested a potential exit from the market after more than thirty years (Inside Retail, February 2026). This move underscores the complexities and volatility of operating in Southeast Asia, where international brands must continually adapt to shifting consumer preferences and competitive pressures. The Philippine retail landscape remains highly attractive, as evidenced by SM Investments’ robust profit growth in November 2025 and SM Prime’s $9 billion expansion plan announced in May 2025, both of which highlight the market’s resilience and the importance of strategic alliances. M&S’s approach mirrors its experience in Australia, where it transitioned from direct retail to a partnership model to better align with local realities (Inside Retail, July 2025). By choosing to restructure rather than withdraw, M&S demonstrates both brand resilience and a commitment to adapting its operational and partnership models to sustain its presence in a dynamic and competitive environment.

M&S says it will stick with the Philippines – with a new partner