M&S executives said the decision to block Marble Arch repairs would have a “chilling effect” on investment decisions. Photo: Holly Adams/Getty Images
Mr Pennycook, who is also the former chairman of Fenwick department store, said the government needed to be “very careful” in encouraging the regeneration of Britain's main streets.
He added: “If we do not stimulate regeneration, then these places will become empty. Perhaps a secondary benefit of the current discussion around Oxford Street is that it brings it closer to home.
“What are we going to do about it together? For the last five years in Chester, Northampton, in almost every major city in the UK, this has been happening.”
The Retail Sector Council was created in 2018 to bring government and industry together to solutions to the problems of the sector.It is co-chaired by Kevin Hollinreik, MP, Minister for Small Businesses.
His report says that the rise in online shopping means retailers are deciding to close stores, which then means malls have become less attractive places to visit. . This, in turn, has pushed more consumers to go online or to larger malls outside the country, the report said.
The report adds: “This is a vicious spiral that many cities and central streets: the more shops close, the more shops are likely to close.”
The council also called on ministers to intervene and take action. help retailers “when undue competition and other laws prevent the industry from helping itself.”
He gave the example of a government ban on plastic bags, which he says has hurt the environment and cost retailers hundreds of millions of dollars. pounds sterling, which ultimately led to higher prices for consumers.
The report added: “The competition law does not allow the industry to cooperate to reduce the use of plastic bags, so undeniable government action is required to solve the problem. There are other ways the industry can work with the government on similar issues.”
Michael Gove blocked Marks & Spencer's store on Oxford Street as it “won't be able to support the transition to a low-carbon future”. Photo: Yui Mok/PA Wire
Retail executives said the downtown blight would eventually hit Treasury tax revenue as fewer people would work, so both National Insurance and income tax would fall.
Dave McCarthy, retail analyst and senior adviser at HSBC Investment Bank, who also sits on the board, said government departments need to “combine their minds” to understand the big picture.
He said, “Without government intervention, tax revenues will fall, employment will fall, and society will suffer.”
M&S CEO Stuart Machin said Mr Gove's decision to block Marble Arch's renovation would have a “chilling effect” on investment across the country.
However, Mr. Gove blocked the decision on the grounds that it “would not support the transition to a low-carbon future” by demolishing the building rather than repurposing it.
M& S warned that she might have to leave the flagship store, although she can challenge this decision in accordance with the law.
The retailer claimed the plans were vital to the revitalization of the shopping district, which is struggling with high crime rates, empty spaces and the rise of American-style candy stores.
In a letter to the Telegraph last week, Sasha Berengi, M&S's chief operating officer, said the Oxford Street incident, in which police arrested nine people and issued 34 dispersal orders, was “another reminder that how bad things are” for the future district.
The incident is believed to be related to a social media campaign urging subscribers to “rob JD Sports” and other shops on the street.
Mr Pennycook said there were scheduling problems just one of a number of roadblocks to local regeneration.
“It's also a matter of overall investment design and local leadership, as well as incentivizing people to rebuild these cities and communities. . Because if these things are not there, then there is a lot of property that will simply remain to rot.”
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