"For the time being, we will continue with our existing agreement, but as and when we have a bigger store in the same city, we will call off the deal with Planet Retail," the source told PTI here on strict condition of anonymity.
M&S would offer employees the option of joining the bigger stores from the smaller stores, M&S Chief Executive Stuart Rose said on his visit to India but declined to give further details on the issue. However, the source too declined to give an exact time-frame for the process.
At present, the UK retail giant has 14 franchisee stores with Planet Retail.
The franchisee stores are around 3,000 sq ft except for one store in Delhi which is of around 20,000 sq ft, he said.
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"With Reliance Retail, we are planning to have stores of around 20,000 sq ft each," M&S's CEO, India, Mark Ashman said and added that "over time, as we come up with bigger stores in locations near to our franchisee stores, we will absorb the employees in our new stores."
The company's strategy will be such that it does not disappoint either its employees or its customers, he said.