Retail property body Revo comments on M&S store closures announcement

As part of its interim results announced yesterday and its wider ‘turnaround plan’, Marks & Spencer (M&S) has confirmed it is closing a series of stores and rebranding a significant number of others as ‘Simply Food’ outlets.

Edward Cooke, Chief Executive of Revo, the retail property body, said:

“M&S’s strategy reflects changing consumer behaviour, resulting in an increased focus on convenience stores, price competition, a strong online presence and excellent customer service – rather than business growth through an ever-increasing property footprint.

“Although M&S continues to look actively for Simply Food expansion opportunities, its fashion-led branches in so-called ‘weaker’ high streets are expected to be the focus of store closures and this will be of concern in those places, given the role retail plays in supporting successful local economies and communities.

“We call on local authorities to intervene and partner with the private sector to regenerate and enhance retail places – to attract customers, boost the shopping and leisure experience and increase value for consumers. This will enhance the vitality and vibrancy of towns, cities and other urban areas as they too evolve and reposition to meet changing consumer needs.

“Further, M&S and other retailers continue to be subject to a business rates regime which hampers property investment and occupation. Therefore, we continue to urge the government to urgently reduce the tax liabilities arising from this punitive tax and address the opaque appeals system.”