Anna Smith, commercial surveyor, Brown&Co, Norwich, discusses the impact of Michael Gove’s decision on M&S. 

In July, Michael Gove, Secretary of State for Levelling Up, Housing and Communities, refused Marks & Spencer’s plans to rebuild its flagship Oxford Street store in a move that could set a precedent for future demolish and rebuild projects.

The plans by Marks & Spencer were for a new 10-storey store with an improved layout, focused on sustainability and a modern design. Its objective was to build ‘a renewed site set to provide a first-class, digitally connected shopping experience, putting the customer first and attracting life back to the nation’s high street.’

Gove said he disagreed with M&S’s argument that there was no viable and deliverable alternative to demolition and that the project was not compatible with the transition to a low-carbon future and the need to reuse existing buildings and materials.

From a commercial agent’s perspective, it has been very interesting to watch the market’s reaction and it seems opinion is very much in favour of improving existing assets, especially if there is a heritage element to consider.

Eastern Daily Press: Anna Smith, commercial surveyor, Brown&Co, NorwichAnna Smith, commercial surveyor, Brown&Co, Norwich (Image: Brown&Co)
However, the counter argument questions why we are putting more constraints on the retail sector, especially the high street where flexibility is crucial to enable retailers to adapt to constant change in consumer demands and behaviour.

The story is set to continue as M&S has launched an appeal to the High Court. Stuart Machin, M&S chief executive, said the decision left the retailer with “no choice but to review its future position” on the UK’s premier high street “on the whim of one man”.

We will have to wait and see whether the threat of losing another household brand on Oxford Street has the leveraging effect that M&S is hoping.

The voids left by House of Fraser and Debenhams are noticeable and I expect the managing agents are keen to keep an anchor tenant like M&S in situ.

That said, earlier this year it was announced that HMV will be returning to Oxford Street, armed with a new ‘retail experience’ and selling pop-culture merchandise as well as music. A great example of a retailer diversifying and modernising its offering to attract new customers. We hope M&S can do the same.

You can contact Anna Smith on 01603 629871.