Yahoo Finance Marks & Spencer denies giving up on the high street
Marks & Spencer has denied giving up on city centre high streets, as it unveiled plans to open new stores in Bath and Bristol.
In response to concerns that M&S is focusing too heavily on retail parks, Archie Norman, the company’s chairman, said there was “absolutely not a pro-out-of-town or anti-city-centre policy” at the retailer.
It follows a recent openings in non-high street locations, with M&S this year announcing new stores at Ladymead Retail Park in Guildford, Surrey, and in Gallagher Retail Park in Dundee.
When asked during the company’s annual general meeting whether M&S had given up on the high street, Mr Norman said it was “absolutely not trying to leave city centres”.
However, the M&S chairman added: “We do have some older stores that are hard and costly to maintain and run so we have to look at that.”
Stuart Machin, the M&S chief executive, said the company “could not afford to refurbish” some of these sites and would instead be investing in stores located near fast-growing communities.
Mr Machin said this meant it would be looking for new locations in city centres, as well as out-of-town locations.
The company announced on Tuesday plans for a new shop in Bath’s SouthGate shopping centre, while it also committed to opening an 80,000 sq ft store in Bristol.
This will require £38m of investment, M&S said, with the latter expected to sell food, beauty products and clothing.
Mr Norman’s remarks will ease concerns over the future of the high street, with retail chiefs having previously warned that more towns and cities risk becoming “wastelands” amid increased closures.
A report authored by the Retail Sector Council, whose members include the chief executives of Sainsbury’s, Boots and Primark, called for policymakers to reform competition law and level the playing field between online retailers and bricks-and-mortar stores.
Richard Pennycook, the former Co-op chief executive and co-chairman of the council, last August suggested more city centres were being “hollowed out” because ministers were not encouraging regeneration.
M&S has previously been critical of the Government’s approach to its Oxford Street regeneration plans, as Michael Gove, the Levelling Up Secretary, attempted to block the razing of its Marble Arch store.
The final decision over whether to approve the redevelopment will fall to the next government.
