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LONDON, Dec 2 (Reuters) - British clothing and food retailer
Marks & Spencer said on Wednesday it would not follow
Tesco in returning business rates relief it has
received from the government to help get it through the COVID-19
pandemic.
Tesco, Britain's biggest retailer said it would repay the
585 million pounds ($780 million) it has claimed, putting
pressure on rivals to do the same.
Sainsbury's, Walmart's Asda and Morrisons
, which have all also claimed relief, all declined to
comment.
M&S claimed business rates relief of 83.7 million pounds
($111.4 million) in its first half to Sept. 26 and can claim for
its second half too.
"We are very grateful for the much-needed support government
has provided to businesses impacted by the pandemic – including
ours," said an M&S spokeswoman.
"It has enabled us to support our colleagues and our
suppliers, whilst continuing to serve our customers in what have
been incredibly challenging circumstances."
Unlike Tesco, which has been able to keep all its stores
open through the pandemic, M&S has seen most of its clothing and
home store space closed for extended periods.
In M&S's food division, cafes and hospitality services,
which prior to the crisis accounted for about 4% of food
revenue, have been closed, while its franchise business,
particularly in travel hubs, has been severely impacted.
Trading at M&S's high street and town centre stores has also
been hit by the major drop in customer footfall.
M&S reported a loss for its first half and did not pay
shareholders a final dividend for the 2019/20 year and has said
it does not anticipate paying dividends for 2020/21. Tesco said
in October it would pay its shareholders an interim dividend.
($1 = 0.7515 pounds)
(Reporting by James Davey; editing by Michael Holden and Sarah
Young)