Staff have been left reeling after retail giant Marks and Spencer announced plans to close two stores in the county.

Nearly 60 jobs are set to be axed with the closure of Market Harborough's and Melton Mowbray's Simply Food branches – just days after both towns lost their Woolworth stores.

The company's Simply Food branches have been earmarked for closure with 25 other stores and more than 1,100 jobs nationwide after the company's worst trading for almost a decade.

The Harborough store opened in June 2006 in The Square, employing 32, many of whom worked in the Iceland store it replaced. The Melton store opened in Scalford Road in September 2006.

The 3,850 sq ft Simply Food store employs 27 people.

M & S stores in Leicester, Fosse Park, Loughborough and Oadby are unaffected by the closure plan.

Local staff declined to talk about the closures, which come following a recent sales slump.

Union leaders were stunned at the scale of job cuts and called for urgent talks after analysts said M&S is expected to report profits of about £620 million.

John Gorle, national officer of Usdaw, said: "We want to talk to the company to get an understanding of the business case that has underpinned this decision. We are shocked at the severity of cuts and were not anticipating closures. Our members will be worried.''

Business leaders in Melton and Harborough say the closures, subject to consultation, would be a severe blow.

Michael Osborne, of Melton Chamber of Trade, said: "I don't think there is going to be good news in the retail sector anywhere in the country and Melton will get its share of problems. It was welcomed as a top end provider to complement other provision in the town. For many shoppers it will be a loss if a decision is taken to close it."

Harborough Independent Retailers Association spokesman Malcolm Lever-Jones said: "This is a blow. I feel for the workers because many worked for Iceland before that closed."

Harborough MP Edward Garnier said: "I will do what I can to persuade senior managers not to close the Market Harborough store."

Rutland and Melton MP, Alan Duncan, said: "I would be sorry if it shuts, it only opened a couple of years ago. In Gordon Brown's recession, there's going to be a lot of pain."

Shoppers said they would be sorry to see the stores go. Linda Watson, of Melton, said: "When I heard the news, I hoped it wouldn't involve this one."

Jim Woolward, 81, of Melton, said: "I couldn't believe it. This will kill the town."

In Market Harborough, Mark Fry, 35, said: "M&S was convenient and offered products other shops in town did not ."

Stuart Rose, chairman of M&S, said: "We are very sadly putting forward this proposal to close the stores and will listen carefully to any suggestions employees have for alternatives."

A spokeswoman for the firm said consultation on the closures would begin next week.