News

Overview

News

Estates Gazette

17 May 1986

And now for something completely different — or is it more of the same?

Purely empirical evidence suggests that the developers who concentrate on retail space, and are up with current market demands, are in for a high time over the next couple of years.

The first item of evidence comes from that pacesetter for all other retailers, Marks & Spencer. The group recently held its end-of-year presentation to the financial community, and it contained nothing but good news for the retail property specialists.

Marks recalled that during the early 1980s it was adding about 150,000 sq ft of space to its chain each year. Last year, the company grew by nearly 271,000 sq ft and this year Marks will create in excess of 500,000 sq ft.

By 1990, analysts were told, Marks & Spencer will have over 9m sq ft of selling space, compared with the current 7.5m sq ft.

Most of the expansion will be in the traditional High Street, turning “fallow areas” to good use and building extensions. Marble Arch, still the grand “flagship”, will be expanded by 40% to 130,000 sq ft over the next two years.

Where conventional extension is no longer possible, more space is being created in “satellite” stores, small units close to High Street “parent” stores in key towns and cities, specialising in particular product ranges.

At the same time, Marks is going to edge-of-town locations. The first is at the Metro Centre, Gateshead, with further ventures planned for Cheshunt, South Gyle, Cambridge and Wilmslow.

Even then, Marks is not content. It is continuing to seek edge-of-town and town-centre sites, modernise existing stores and acquire land.

The capital programme is awesome. Total spending last year was £140m and will continue at an accelerating rate. By 1990, Marks expects to have spent £1.5bn or more — the largest four-year programme in its history.

At the other end of the scale, we have Mrs Fields Inc. Mrs Fields Inc, by coincidence, has a Marks director on its board, Clinton Silver, but its main claim to fame is its 300 “cookie stores” strung throughout 55 cities in the United States.

Mrs Fields has just launched herself on the British market. The first cookie store in Britain has opened up in the Trocadero, Piccadilly Circus, and further units are planned.

The cookie stores sell a freshly baked, soft, chewy cookie, the traditional variety being chocolate chip. The product is baked on the premises, but even so the requirement is for only about 700 sq ft per unit.

The aim is to locate in the best possible sites with the greatest flow of pedestrian traffic, and in significant cities the stores are clustered quite close together. They make, on average, $1,000 a week each in pre-tax profit.

Given that Mrs Fields, based in Utah, has cash in her purse following the flotation of the company on the London Unlisted Securities Market, she, too, will be looking hard for new locations.

The retail boom looks far from over.

And now for something completely different — or is it more of the same? Purely empirical evidence suggests that the developers who concentrate on retail space, and are up with current market demands, are in for a high time over the next couple of years. The first item of evidence comes from that pacesetter for all other retailers, Marks & Spencer. The group recently held its end-of-year presentation to the financial community, and it contained nothing but good news for the retail property specialists. Marks recalled that during the early 1980s it was adding about 150,000 sq ft of space to its chain each year. Last year, the company grew by nearly 271,000 sq ft and this year Marks will create in excess of 500,000 sq ft. By 1990, analysts were told, Marks & Spencer will have over 9m sq ft of selling space, compared with the current 7.5m sq ft. Most of the expansion will be in the traditional High Street, turning “fallow areas” to good use and building extensions. Marble Arch, still the grand “flagship”, will be expanded by 40% to 130,000 sq ft over the next two years. Where conventional extension is no longer possible, more space is being created in “satellite” stores, small units close to High Street “parent” stores in key towns and cities, specialising in particular product ranges. At the same time, Marks is going to edge-of-town locations. The first is at the Metro Centre, Gateshead, with further ventures planned for Cheshunt, South Gyle, Cambridge and Wilmslow. Even then, Marks is not content. It is continuing to seek edge-of-town and town-centre sites, modernise existing stores and acquire land. The capital programme is awesome. Total spending last year was £140m and will continue at an accelerating rate. By 1990, Marks expects to have spent £1.5bn or more — the largest four-year programme in its history. At the other end of the scale, we have Mrs Fields Inc. Mrs Fields Inc, by coincidence, has a Marks director on its board, Clinton Silver, but its main claim to fame is its 300 “cookie stores” strung throughout 55 cities in the United States. Mrs Fields has just launched herself on the British market. The first cookie store in Britain has opened up in the Trocadero, Piccadilly Circus, and further units are planned. The cookie stores sell a freshly baked, soft, chewy cookie, the traditional variety being chocolate chip. The product is baked on the premises, but even so the requirement is for only about 700 sq ft per unit. The aim is to locate in the best possible sites with the greatest flow of pedestrian traffic, and in significant cities the stores are clustered quite close together. They make, on average, $1,000 a week each in pre-tax profit. Given that Mrs Fields, based in Utah, has cash in her purse following the flotation of the company on the London Unlisted Securities Market, she, too, will be looking hard for new locations. The retail boom looks far from over.