Troubled M&S pulls out of Mumps development

STRUGGLING high street giant Marks & Spencer has said it will not be taking up its option on new retail space at the Prince’s Gate at Oldham Mumps development.
 
Oldham Council was contacted yesterday (Tuesday November 22) by the retailer and informed of the decision.
 
M&S recently confirmed plans to close 30 UK clothing and homeware shops and convert dozens more into food stores as part of a business restructuring.
 
It came after the firm had reported falling sales and profits in the six months to the end of September.

M&S and Oldham Council had announced the plans for the store at Prince’s Gate in November 2014 as part of a mixed-use scheme that includes retail and residential opportunities.

Jean Stretton, Oldham Council leader, said: “We are, naturally, disappointed by this decision.”
 
“It’s well-known that Marks & Spencer has been experiencing difficulties in a very competitive market and they recently announced store closures as part of a business restructuring.
 
“When they first informed us of this decision, Marks & Spencer were clear that although this means they will not be taking retail space at the Prince’s Gate site, this does not mean that they’re necessarily closing the door on coming to Oldham.

 
 
“I want to reassure people that we are continuing to have discussions with them about this and we are hopeful of a positive future outcome.   
 
“The global economic and trade factors affecting M&S at this time are completely outside of our control – and our ambitions for Oldham remain undaunted.
 
“Rest assured that we will leave no stone unturned to deliver a positive outcome at the Prince’s Gate site which complements our wider regeneration programme in the town centre.
 
“Despite this news, Oldham town centre is firmly on the up and the stunning Old Town Hall cinema and restaurant complex which opened last month is already bringing increased footfall, trade, investment and visitors here. We are in positive discussions with several partners to capitalise further on that success.”

The 51,000 sq ft full-line (clothing, home and food) store was due to open in 2018. Instead, the retailer is searching for a new site in the area with a view to opening a food-only store.

Steve Bennett, director of Property for Marks & Spencer, said: “This is a not a decision we have taken lightly and we understand that both the council and local residents will be disappointed.

“However we are modernising and changing M&S for our customers and we believe improving our full line stores in the North West and opening new Food-only stores in the area will better serve our customers and help build the M&S of the future.”

The announcement is specific to Oldham and does not affect other planned new M&S stores. M&S says it remains committed to the relocation of its full-line store in Rochdale to the Rochdale Riverside development which is due to open in 2018.

Earlier this month M&S announced plans to improve and modernise its store estate to better meet customer needs over the next five years.

The plans include opening more than 200 new food-only stores by the end of 2018/19 and selling clothing and home products from 60 fewer stores.

The changes include approximately 30 full line closures, downsizing or replacing around 45 full-line stores to food-only stores and opening new full line stores in areas where M&S is under represented.