Should Marks & Spencer walk away from Marble Arch?

Is Michael Gove calling M&S’s bluff? The Communities Secretary has refused permission for Marks & Spencer’s to knock down its huge flagship store on London’s Oxford Street. Once its biggest cash cow, at one time Marks & Spencer’s Marble Arch made more money per square foot than any other shop in the world, its messy layout and disjointed floors did nothing to stop the cash from flowing into the tills. That was until the pandemic and Oxford Street become a ghost town.

Marks & Spencer clearly thought this was an opportunity to redevelop while Oxford Street was in the doldrums. The proposal was to raze to the ground the 1930 Art Deco building and build a new development including a new shop, offices, cafe and a gym.

The plans were initially waved through by Westminster Council but following pressure form environmental and heritage groups, Gove stepped in and called an inquiry. The result of which was announced today: the project should be halted.

The concept art for the proposed Marble Arch redevelopment

Westminster City Council cabinet member for planning and economic development Cllr Geoff Barraclough said at the inquiry: “The Marks & Spencer application had significant implications for the environment so it was right the case should be tested robustly. The Council’s position is to encourage landowners to refurbish buildings, not demolish them.”

The inquiry found the public benefits of the proposal did not outweigh the harm to nearby landmarks, including the Grade II listed Selfridges building and nearby conservation areas, though the building isn’t within a conservation or listed itself. Selfridges itself had said it approved the development and if the council was so worried about any work being carried out near the iconic store then nothing could ever be done in Oxford Street.

Marks & Spencer Marble Arch. Image: Alamy

A furious Stuart Machin, CEO at Marks & Spencer, said:  “We have been clear from the outset that there is no other viable scheme – so, after almost a century at Marble Arch, M&S is now left with no choice but to review its future position on Oxford Street on the whim of one man. It is utterly pathetic”

Machin cites the current number of vacant units on Oxford Street, “When 42 of the 269 shops on what should be our nation’s premier shopping street sit vacant, disregarding the expert opinion and approval of the appointed planning inspector and playing to the gallery by kiboshing the only retail-led regeneration proposal is a short-sighted act of self-sabotage by the Secretary of State and its effects will be felt far beyond M&S and the West End. It is particularly galling given there are currently 17 approved and proceeding demolitions in Westminster and four on Oxford Street alone, making it unfathomable why M&S’s proposal to redevelop an aged and labyrinthian site that has been twice denied listed status has been singled out for refusal.”

Machin says there is no levelling up without a strong, growing capital city, but the ripple effect extends well beyond Oxford Street. “Towns and cities up and down the country will feel the full effects of this chilling decision, with decaying buildings and brownfield sites now destined to remain empty as developers retreat,” he said. To underscore his point about decaying buildings, he released images of the Marble Arch site showing the grim reality behind the Art Deco edifice.

Dee Corsi, CEO of the New West End Company that represents 600 retailers, restaurants, hotel and property owners across Bond Street, Oxford Street, Regent Street & Mayfair, shares Machin's frustration. She said: “Today’s decision is a missed opportunity to accelerate the growth of the West End and has the potential to damage the district’s reputation as a leading destination for global businesses and investors. It is particularly disappointing, given that the proposal was previously approved by both Westminster City Council and the Greater London Authority, as well as meeting the aims of the London Plan and the National Planning Policy Framework.

"As we understand, the current building has no historical or architectural significance and yet the new design would have been a significant enhancement to Oxford Street.The West End’s unique character has always been shaped by its buildings and those that live, work and shop in the area, and its reputation as a world-class destination has been maintained across centuries through consistent reinvention of the built environment.

"The proposal for Marks & Spencer’s flagship redevelopment is part of Oxford Street’s future growth story and today’s decision misses the opportunity to capitalise on the positive momentum the district is currently experiencing.Investment in the Elizabeth Line infrastructure has already delivered over 60 million extra visitors a year to the district, whilst the Oxford Street Programme promises a once-in-a-generation transformation the  public realm.

"A thriving West End is necessary to support businesses throughout the UK, acting as the national shop window for our most iconic brands. It draws visitors from around the world, who contributed £28 million to the UK economy in 2019 and is a major reason why investors choose to invest and live in London."

This decision could be a game changer for future high-street developments. It looks like everything will be a refurbish-first approach from now on, particularly taking into consideration the CO2 produced when demolishing a building. The heritage campaigners now have the environmental and carbon release consequences in their pocket for any proposals that cause controversy or meet with public opposition.

The Marble Arch Art Deco building isn’t even the best of its type and many better buildings have been lost over the years. That’s not a reason to demolish. Marks & Spencer is probably 10 years too late on this one and the attitude to blanket demolition has changed. Heritage campaigners will be cheering, but will M&S sink money into a building they no longer want? While the building will remain, will M&S?

M&S isn’t afraid of walking about from it historical stores. It’s huge new store in Liverpool will replace one they have been in since 1928. The new store at the Liverpool ONE retail development will replace the current Marks and Spencer store on Church Street, ending nearly 100-year tenure in the iconic Compton House building in the city centre. The new 100,000sq ft store on South John Street opens on 15 August and will take over two floors of the former Debenhams building which closed in May 2021.

Debenhams' former Oxford Street site is being redeveloped

M&S has been busy opening larger stores in better locations and closing older stores. New sites including the Birmingham Bullring, Trafford Centre in Manchester, Leeds White Rose and Lakeside Thurrock have all been converted from previous Debenhams sites.

This could be an opportunity for M&S to look at another former Debenhams, the one on Oxford Street. This and the old House of Fraser, next door, are undergoing redevelopment and could be a better location for M&S on the west side of Oxford Street. M&S only wanted the lower floors of the new Marble Arch development anyway.

M&S Marble Arch never quite felt like a flagship. It was squished to the side of the road and the small floor plans made it increasingly taller as it expanded. It was also an effort to get to the top floors.

Marks & Spencer currently has great momentum behind it. The stores are looking good and consumers seem to be happy with what it is doing across both fashion and food. Finally the retailer is proving that it is future thinking and no longer wedded to the past. A forced move down Oxford Street could be the best thing to happen from all of this.