Oxford Street's decline 'a blueprint for high streets' without regeneration efforts, retail bosses warn
16 August 2023, 07:06
In Brief:
- Retail leaders warn high streets could become "wastelands" without regeneration efforts backed by government.
- Report urges reform of competition law and support for physical stores to combat impact of online shopping.
- Dispute over future of M&S's Oxford Street store highlights wider struggles facing high streets.
- Retail chiefs argue declining high streets will mean lower tax revenue and employment if not addressed.
The decline of Oxford Street risks becoming a blueprint for the downfall of Britain's high streets if the government does not support regeneration efforts, retail leaders have warned.
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A report by the Retail Sector Council, whose members include CEOs of major retailers like Sainsbury's, Boots and Primark, urged ministers to aid the industry by reforming competition law and creating a level playing field between online and physical stores.
Former Co-op CEO Richard Pennycook, co-chair of the council, said more towns and cities were at risk of becoming "wastelands" without incentives for retailers to invest in stores.
This comes amid a dispute between Marks & Spencer and Housing Secretary Michael Gove over M&S's flagship Oxford Street store, which LBC reported about last week. Gove rejected proposals to demolish and rebuild the Marble Arch store to enable regeneration.
Read more: Oxford Street was once the retail envy of the world so what has gone wrong, writes Henry Riley
Read more: Which high street stores are closing? A full list of shop closures for 2023
Read more: Boots stores closure: First of 300 shops begin to close - here's the full list
Pennycook, former chairman of Fenwick, said the government must encourage high street renewal. "Without incentives for regeneration, these places get hollowed out," he said. "Perhaps a secondary benefit of the Oxford Street discussion is it brings the issue closer to home. What will we collectively do?"
The Retail Sector Council, set up in 2018, brings government and industry together on retail challenges. Its report said online shopping meant more store closures, making shopping centres less attractive and fueling more online shopping - a "vicious spiral" for high streets.
The council urged government intervention to help retailers "when misplaced competition and other laws prevent the industry from helping itself." For example, the plastic bag ban damaged retailers and consumers despite intentions to help the environment.
Retail leaders said high street demise would hit tax revenue as employment and taxes fall. HSBC's Dave McCarthy said joined-up government thinking was needed on the bigger picture. "Without government stepping in, tax and employment will fall and society will suffer," he said.
M&S CEO Stuart Machin said Gove's Marble Arch decision would have a "chilling effect" on investment. But Gove blocked it for failing to support low-carbon transition by demolishing rather than repurposing. M&S may now exit the store, although it could legally challenge the ruling.
M&S said the plans were vital to revive Oxford Street's fortunes amid rising crime, empty sites and candy stores. In a letter, M&S's Sacha Berendji said a recent violent incident was "another reminder of how bad things are" for the area's future.
Pennycook said planning was just one barrier to high street regeneration. "It's also about the overall structure for investment and local leadership, and incentivising regeneration. Without those, big properties are left to rot."
