The question of whether the UK high street is struggling or merely changing is never far from the world of commercial property commentary. Extensive coverage was given to the government’s high profile appointment of Mary Portas, the retail adviser brought in to tackle perceived problems on the UK’s high streets, including the amount of unoccupied retail commercial property. Household names, including electrical product retailer Dixons, chocolatier Thorntons and clothes vendor Jane Norman, have all recently had their moments in the harsh glare of the economic spotlight.
In contrast, Marks and Spencer, that long-term occupant of the UK high street, appears unperturbed, recently declaring its intent to continue its stabilising presence as ‘a sort of anchor of the high street’.
That quote came from its chief executive Mark Bolland, who recently spoke of his ‘strong belief in the high street’ and an intention to invest in existing M&S shops, which now number more than 600 across the UK.
Plans are reported to include a 2% growth of its estate this year, bolstered by a 3.3% increase in like-for-like sales in food.
Another proposal, said to begin in autumn 2011, is to pilot a scheme where its commercial property is segmented, based on the demographics and affluence of its location.
The company has recognised the need for a variety of commercial property options; since the 1980s it has had a presence in out-of-town developments. It now has fifty ‘outlet’ stores, offering products at substantial discounts. Many are in retail parks, while others have appeared on existing, redeveloped commercial property sites.
Founded in 1884, the company has grown to employ over 70,000 staff in 1,010 stores worldwide, according to 2010 figures. In the UK, it is estimated to have over 12.5m sq ft of selling space, with its Marble Arch flagship operation offering roughly 170,000 sq ft of retail floor space alone.
