When it comes to commercial property and the future of the high street, the Marks and Spencer Oxford Street refurbishment story is a saga that has been going on for a long time. Oxford Street is probably the most famous of the high streets and shopping areas in the UK and is essential for the British retail industry.
For years, Oxford Street has attracted domestic and international tourists, who flock to well-established shops such as Selfridges, Top Shop, HMV, and House of Fraser – as well as Marks and Spencer. Pressures including the rise of online shopping and COVID-19 have meant that we have seen a decline in the shops on the street, with Top Shop, HMV, and House of Fraser all leaving the street.
Many of the shops have since been replaced by US-style sweet shops and this, in particular, has led to a decline in the quality of shops on Oxford Street and, consequently, fewer people visiting.
Recently, however, we have begun to see things turning around, as Oxford Street welcomes new shops from businesses such as Ikea (taking the spot previously occupied by Top Shop), and the return of HMV.
Marks and Spencer
Marks and Spencer is one of Britain’s most iconic shops, taking pride of place in many retail units on the country’s high streets. It has wholly occupied the art deco building at 458 Oxford Street – known as Orchard House, since 1967, becoming their flagship shop and seeing building extensions to boost its size and capacity.
Modern demands on retail businesses, however, mean that customer needs and expectations of retailers are changing as they compete with out-of-town retail parks and online shopping. According to Marks and Spencer themselves, the current shop “is no longer fit for purpose. It’s home to a confusing layout, misaligned floors and a poor “backstage” area for staff.”
This has led to Marks and Spencer looking to carry out the work necessary to rectify these issues – and there were two options – the first, to retrofit the shop to the required standard, or the second, to demolish the building and rebuild it to give them the elements that they need for a successful shop, looking to the future, whilst helping to boost footfall in the Oxford Street area.
Problems with Retrofitting
According to Marks and Spencer, the work required to adequately retrofit the existing building to create the retail unit that they felt was necessary was deemed to be unworkable, and the only solution that Marks and Spencer could see was to demolish the existing building and build a new, super-modern commercial unit in its place.
This was mainly to do with the poor quality structure of the buildings and the presence of (undisturbed) asbestos.
Innovative, Sustainable Design
The plans that Marks and Spencer came up with when designing the new commercial property put a strong emphasis on sustainability and energy saving.
Some of the elements of the building include:
- Using less than 25% of the energy that the shop currently uses
- 95% of the existing building materials are to be recovered and reused or recycled
- Creating a net positive contribution within 11 years
These elements would mean that the new Marks and Spencer building would rank amongst London’s top 1% in sustainability performance.
The plans were first put forward in March 2021, but have come up against a series of challenges along the way.
With the plans having been accepted by Sadiq Khan (London Mayor) and the Greater London Authority, challenges were then made by Michael Gove (Secretary of State for Levelling Up, Housing and Communities) and campaigners. It has left the plans in limbo since they were initially drawn up.
The Government and campaigners argue that the plans to demolish the existing Art Deco building will negatively impact the aesthetics of the area (including the Grade 2 listed Selfridges building opposite).
Marks and Spencer took the Government to court over their decision to block the plans, and the appeal was granted, with the judge, Mrs Justice Lieven stating, “In my view, it is plain that the secretary of state misinterpreted the national planning policy framework, and therefore erred in law.”
Marks and Spencer are now waiting for the final go-ahead from the Department of Levelling Up, Housing and Communities before they can begin the work.
Marks and Spencer argue that this is the only way to give the area the regeneration and revitalisation that the area needs – as well as provide more jobs in the area.
What Does This Mean for the High Street in General?
Although the Marks and Spencer case is unique for several reasons (the nature of the existing building and those around it, for example), there are elements that we can learn from when it comes to the high street in general.
Marks and Spencer knows what they are talking about when it comes to retail, and for them to fight so hard to be able to build a sustainable, energy-efficient building shows how important this can be to a retail business. They have – and are prepared to – invest a lot of money into boosting the circular economy, sustainability, and energy efficiency for the future.
The other main element that we are seeing Marks and Spencer really invest in, is the customer experience element. They are focusing on creating a “first-class, digitally-connected shopping experience” – something that we have noticed a particular need for in the high street, especially since COVID.
For us here at Boxpod, the takeaway for people looking to rent commercial units, especially in the retail sector, is that there should be a great focus on sustainability and customer experience. These are the two areas that Marks and Spencer have been looking to emphasise in the design of their state-of-the-art, modern building, and surely a sign of what will become increasingly important in the future. If you are looking to rent a commercial property for your retail business, need office or warehouse space, or industrial space, why not take a look at what we have here to offer at Boxpod?