M&S shifts focus to northeast after Gove blocks demolition of Oxford Street

M&S has criticized the decision to block the demolition of its Oxford Street store, saying it would have a «chilling effect» on investment. : Jeff Pugh

Marks & Spencer is turning its attention to the North East after plans for a multi-million dollar renovation of its Oxford Street store were stymied by the promotion of secretary Michael Gove.

The retailer has announced plans to invest £13m in its stores in the North East of England, including a redesign of a Newcastle city center store that first opened in 1932.

It works. the project will start in the coming weeks.

The decision to open a major investment in the North East comes after plans to bulldoze and rebuild the Oxford Street flagship store in central London were blocked.

M&S said it needs to update the grounds to bring the building to zero standards and reflect changing shopping habits.

However, Mr Gove turned down the offer last month, despite M&S having Westminster backing. Council and local businesses such as Selfridges.

Leveling Secretary Michael Gove accused of «anti-business approach»; from the M&S boss. Credit & Copyright: Yui Mok/PA Wire

The Minister for Upgrading and Housing said the proposals «will not support the transition to a low-carbon future.»

M&S said blocking its plans would have a «chilling effect» on investment and accused the Government of acting as an environmental «pressure group».

Stuart Machin, M&S chief executive, wrote in The Telegraph that Mr Gove «inexplicably adopted an anti-business approach, stifling growth and depriving Oxford Street of thousands of new quality jobs, better public space and what should have been a modern, sustainable, M&S flagship store.»

M&S previously warned that London was on «life support». due to the government's decision to abolish duty-free shopping, which dealt a blow to retailers who thrived on tourists.

Despite this, the government has pledged to spend £12.5m on its London shops.