Client: Marks and Spencer
Our retail team is advising Marks & Spencer on the roll out of its store refurbishment programme
The well-publicised revival of Marks & Spencer has been attributed to a number of factors, one of which has been the £650m modernisation programme of its stores; the largest refurbishment programme in UK retailing history. Started in 2005, the programme often involves major construction work where entire store layouts have been revised.
Most standard UK leases contain restrictions or conditions when undertaking alterations, so works such as those being undertaken by M&S require the landlord’s consent before they can commence. Our role in this project has been to negotiate and obtain the necessary consents and rights to undertake the work for the entire refurbishment programme across more than 250 stores.
The solution
With so many stores to renovate within a four-year timeframe, this has been a labour-intensive exercise requiring a team of half a dozen people at any one time. As the ownership structure and physical fabric of its properties vary so widely, a host of issues needed to be resolved. Our approach remained consistent. Having collated an encyclopaedic knowledge of the tenure of each store, and the restrictions in each lease, consent has often had to be obtained in a relatively short time frame with no possibility of works being able to be delayed. As part of a large team of consultants and contractors, excellent communication has been critical and has helped maintain M&S’s excellent relationships with their landlords.
Results
We have achieved a 100% success rate in obtaining landlord’s consent for each property. At present, three-quarters of the refurbishment programme has been completed, and the remainder is on schedule for completion by autumn 2008. M&S report that customer feedback on the new store formats is excellent and sales performance at the new stores is strong, amply justifying the investment.
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