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I got in trouble last time I commented on the possibility of Marks & Spencer closing some of its unmodernised stores in the high streets of smaller towns, with some people in the town I mentioned becoming very angry that I’d suggested it might pull out of there.
But I’ve always thought it’s inevitable that M&S will steadily withdraw from those places where its presence has been for purely historic reasons, and this morning we got a call from the BBC’s local radio station in Lincolnshire asking for comment on the closure of M&S’s stores in Grantham, Skegness and Scunthorpe.
George did the honours and you can hear his interview here, if you go to about 15 minutes - there’s an amusing moment where the presenter takes exception to him saying M&S pulling out of a town isn’t “the end of the world”.
There’s a fourth store closing too, in Nuneaton, and I suspect the days of some others may be numbered. These stores won’t make a meaningful contribution for M&S, but the problem is that when M&S pulls out of a town, it does deliver a hammer blow to the high street - listen to the mayor of Skegness on the subject after George finishes his interview for proof. The high streets of many of these market towns are probably struggling already, but still having M&S is what gives them credibility. Take that away, and they’re in real trouble.
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Readers' comments (4)
Anonymous | 26-Jul-2010 9:24 am
What your piece implies is that these High Streets are at the mercy of decisions made in the remote Head Offices of large companies, be that retailers or absentee landlords.
If local councils hadn't rolled over across the years and encouraged multiple retailers to the detriment of local businesses then High Streets might have local retail that not only meets the needs of the local population, but does so profitably.
Is it too late to reverse the years of damage causes by high parking charges, high rates and city centre mis-management?
I don't know, but I can hope.
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Gabriella Coscia | 29-Jul-2010 10:33 pm
Unfortunately there is no surprise here. M and S are now under a new CEO Mr Bolland and are planning new stores where there is a potential to make money. The stores closing are those unmodernised and where sales and the high street in general is failing. Scunthorpe lost a House of Fraser and BHS as well as now M and S. 12 years ago Scunthorpe was going to get a larger m and s that was then this is now. Scunthrope is an area where value retailers like Peacocks, Primark and other cheap value chains are replacing the medium and quality retailers like M and S - High Streets are developing in to value and quality high streets depending on the demographics and income of the area.
I suspect not only will these closures go ahead but more unmodernised M and S stores will close in failing shopping centres, possibly Barrow, Dover, possibly Aylesbury and M and S will certainly be reviewing leases when the rent review is due as they have in Grantham. Grantham has been hit by closures Burton is another name leaving or to have left this town
With the current economy M and S could easily shed 15 per cent of it's store portfolio reducing to 430 core stores across Britain from the current 583 odd.
It will happen, where M and S choose not to expand or relocate new cheaper anchors will come in like TK Makk
M and S are likely to expand where the sales figures are rising and there is the demographics for their stores. This includes more out of town stores to take advantage of cheap rents caused by the collapse of other chains like the furniture chains and the conversion of poorly performing stores to food and Outlet with a limited range of food on offer where the alternative is a branch closure. Personally , I think M and S could redeem perhaps one of the potential stores in Lincolnshire from closure.
It would make sense to make Scunthorpe an outlet store with a small food section given it's closeness to Skegness which is also closing and Grantham could be trialled for the M and S simply food format only in a smaller location or renegotiating the rent with the council subsidising a cheaper rent from the landlord but may be they covered that.
I actually see M and S growing with the potential for second stores in certain locations where m and s do well like Tunbridge Wells which opens in October Home and Food, places like Brighton could accommodate a Home and Food in addition to the existing main store, Canterbury could accommodate a Simply Food or Home and Food in addition to the city store as could Maidstone.
Other places like Lincoln also spring to mind
Overall store numbers will be down due to a combination of recession, higher vat, changing demographics in certain areas that are moving towards value only chains now too poor to sustain an m and s store and due to the growth of the internet.
That unfortunately is life
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Graham Soult | 29-Jul-2010 11:53 pm
Checking them out on Google StreetView, it's interesting - but not surprising - to see that all four of the threatened M&S stores look fairly small in size, and that they all appear unmodernised, with the old mint-green Marks & Spencer fascia.
The obvious conclusion from this is that these are stores that M&S hasn't quite known what to do with for some time.
However, if the stores are left to become increasingly dowdy and uninviting - and locals contrast this with the shinier, improved M&S's that they find in the nearby cities - is there any wonder that shoppers have been staying away?
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Gabriella Coscia | 3-Aug-2010 9:48 pm
@Graham
There is a reason why M and S didn't modernise the stores, why modernise a store that your set to close.
I can think of countless others like Dover and Barrow in Furness.
High Streets can survive without M and S, Folkestone has survived without them and lost BHS recently to a Primark opening soon.
Chatham got TK Maxx in place of M and S and Next so there is life even if M and S choose to go.
I don't believe that M and S are not interested in small towns, touch wood Deal in Kent isn't somewhere you would expect to find a M and S branch this one has been here since 1935 and this one is modernised in the new M and S colours why, because it makes a lot of money for them - M and S need justification that they make money.
Grantham is closing because the lease is up and the landlord is greedy. Scunthorpe the landlord there wants a 70 per cent hike in rent but won't allow m and s to upgrade the store - I would walk away too if a property company behaved in that way.
M and S's mistake all to often is to sell and lease back stores.
I am sure Grantham will survive without M and s , they do have Next and Laura Ashley after all, there is life after Marks and Spencer's on the high street and they are not the pull they once were.
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