Will wrecking M&S revitalise the UK high street?

After years of back-and-forth, Marks & Spencer’s has received approval to demolish its flagship Marble Arch location in order to redevelop the famous art deco building.

Plans were first submitted for the revamp back in March 2021. They were blocked at the time by environmental groups as well as the former secretary of state, Michael Gove, over concerns about harm to nearby landmarks.

Last week, housing secretary Angela Rayner ruled that the retailer should be allowed to demolish the store on London’s Oxford Street. The decision ends what CEO Stuart Machin described as “three unnecessary years of delays, obfuscation and political posturing” on X.

The news might sound like a death knell for the struggling high street. However, the quick resolution of the dispute signals a renewed commitment from the government to take swift action to revive the UK high street. And not a moment too soon.

Thousands of retail businesses — including a number of big-name brands — have gone bust since 2021, and the new M&S development could be the start of a retail renaissance.

M&S to build mixed-use hub

First opened in 1930, the building (also known as Orchard House) has become a staple on London’s most famous shopping street over the past nine decades. However, even on the busy streets of the capital, consumer footfall has been steadily declining.

M&S has said it intends to remake the store into a nine-storey building that houses retail space as well as a cafe, gym and office to re-engage shoppers and encourage sales growth.

Many planners have been looking at retrofitting existing buildings to turn them into mixed-use sites. By combining shops with restaurants, cinemas, offices, and homes, these developments create a more attractive place where people can shop, eat, work, and live.

Last year, developers shared similar plans for the old HSBC building in Canary Wharf, which will be redesigned to hold workspace alongside retail, home, and leisure amenities.

Mixed-use sites are also more convenient for shoppers, who have grown tired of travelling to destination retail parks and shopping centres and increasingly asking for smaller, more strategically-located convenience stores (M&S has opened 10 more smaller sites this year).

Following the ruling, Machin said: “We can now get on with the job of helping to rejuvenate the UK’s premier shopping street through a flagship M&S store and office, which will support 2,000 jobs and act as a global standard-bearer for sustainability.”

More power to councils

Showing M&S the green light is one prominent example of how the government plans to address the problems facing UK high streets. For those brick-and-mortar businesses that aren’t based in the capital, though, it has taken a different approach.

At the start of this month, local councils were given the ‘right to rent’ under new laws that will allow them to auction off empty commercial properties for rent, without the landlord’s say-so.

The scheme is intended to fix the huge number of stores that lie empty in towns and cities. Boarded-up windows and dilapidated buildings can create a sense of neglect and decay, reducing visitor footfall and encouraging criminal activity, such as a rise in shoplifting.

Despite these measures, however, the government has yet to carry through with one of its biggest election promises for SMEs: business rate reform. Labour had previously said it would scrap business rates. But, apparently, it still intends to profit massively off them first.

In October’s Budget, chancellor Rachel Reeves slashed the Retail, Hospitality, and Leisure (RHL) Relief discount from 75% to 40%, raising the rates bills for thousands of UK SMEs.

“We want to breathe life back into towns”

M&S may be rebuilding its HQ, but the government is hoping it can rebuild its reputation. It has been a lacklustre start for Sir Keir Starmer. In part due to the business rate debacle, the Autumn Budget was criticised by business owners, with some calling for a general election.

According to analysis by the Local Data Company, one in seven shops on UK high streets now sit empty today. The M&S plans and new powers for local authorities should act as a kernel of optimism for SMEs, who want to see action taken after years of neglect.

But it’s important to note that one key obstacle remains. High business rates will need to be properly addressed for SMEs to take full advantage of the high street renewal schemes.

“We share the government’s ambition to breathe life back into our cities and towns and are pleased to see they are serious about getting Britain building and growing”, added Machin. “We will now move as fast as we can.”