Marks & Spencer's £50 million investment plan to open new stores in the Liverpool area has encountered significant delays. The project, which includes a major new store in Speke and an upgraded food hall in Formby, has been stalled following planning policy objections raised by rival supermarket Tesco.
The retailer's ambitious store renewal programme for the North West is now facing uncertainty, with progress on six new locations, including the one in Formby, currently paused. M&S has stated that investing in its stores remains a key priority for the business.
Key Takeaways
- Marks & Spencer has allocated £50 million for a multi-year store expansion and renewal project in the North West.
- Plans include a new full-line store at New Mersey Retail Park in Speke and a new food hall in Formby.
- The Formby project and five other new locations are delayed due to planning policy objections filed by Tesco.
- The investment is part of a broader national strategy to modernise and relocate stores to prime retail locations.
Details of the North West Investment Plan
Marks & Spencer has outlined a significant investment strategy for the North West, committing £50 million over the next three financial years. This funding is part of a national store rotation programme designed to modernise its retail footprint and improve the customer shopping experience.
The plan included proposals for five brand-new stores across previously untapped locations in Liverpool, Cheshire, Greater Manchester, and Lancashire. Additionally, the investment covers the renewal of three existing stores in the region to meet the company's latest format standards.
An M&S spokesperson commented on the company's strategy, telling the ECHO: "Investing in new stores is one of our key transformation priorities, driving further growth in our M&S food business and giving our customers the best possible M&S shopping experience.”
Specific Plans for Liverpool and Formby
Two key projects were announced for the Liverpool city region, both of which are now subject to delays or pending final approval. These developments were intended to significantly enhance M&S's local offering.
New Full-Line Store in Speke
A major component of the plan is the opening of a new full-line store at the New Mersey Retail Park in Speke. This development, which is still pending planning approval, would replace the existing M&S food hall at the site.
The proposed store aims to provide a much larger retail space, offering a comprehensive range of M&S products. This would include clothing, home goods, and beauty products, in addition to an expanded food selection.
Upgraded Food Hall in Formby
In Formby, M&S intended to open a new, larger food hall at The Point development. This new site was set to replace the current, smaller food hall in the town. The company stated that the upgraded venue would support approximately 60 local jobs. However, this is one of the six locations directly affected by the planning objections.
Investment at a Glance
- Total Investment: £50 million
- Timeframe: Next three financial years
- New Stores Planned (North West): 5
- Renewed Stores Planned (North West): 3
- Jobs Supported (Formby): 60
Source of the Delays
The primary obstacle to the expansion plans comes from competitor Tesco, which has lodged objections on the grounds of planning policy. According to a report in The Grocer, these objections have halted progress on six of the newly proposed M&S locations, including the Formby food hall.
Tesco has asserted that its objections are based strictly on planning policy and are not motivated by concerns over potential loss of trade. The formal planning process must now address these challenges before M&S can proceed with its plans for the affected sites.
Understanding Planning Objections
In the UK, planning applications for new retail developments can be challenged by third parties, including rival businesses and local residents. Objections are typically based on whether a proposal aligns with local and national planning policies, which cover issues like land use, environmental impact, and the vitality of existing town centres.
Broader M&S Strategy and Vision
Despite the current setbacks, M&S is continuing its store renewal and rotation programme across the country. The retailer reported at its half-year results that the strategy is progressing well, with new and refurbished stores showing strong trading performance.
Will Smith, property director at M&S, elaborated on the company's goals.
"As we reshape for growth, we want to open new stores we can be proud of and that deliver the best possible shopping experience for customers. Our pipeline of stores for 2025 demonstrates our continued investment in market-leading stores as we deliver our transformation priorities."
The company has already completed a renewal project at its Gemini Retail Park store in Warrington, Cheshire. The redesign features a refreshed clothing and home department, a larger beauty section, and an expanded food hall to better serve customer needs.
Smith also highlighted the positive impact on the local economy, stating, "M&S already has many local supplier partnerships such as Park Cakes in Oldham who make the customer-favourite Colin the Caterpillar cakes, and these new stores will help showcase their products and support jobs throughout the supply chain."