M&S unveils Oxford Street revamp as part of £700m growth plan

Marks & Spencer has unveiled a major refurbishment of its Pantheon store on London’s Oxford Street, presenting the 88-year-old outlet as a test case for a wider £700 million investment programme.

The retailer plans to direct the spending toward modernising stores, improving its supply chain and distribution network, and developing its product ranges. Chief executive Stuart Machin said the company needs to update both its physical shops and online experience as it seeks sustained growth after a difficult year.

M&S’s online trading was disrupted for almost seven weeks by a cyberattack, which the company said reduced profits by more than £300 million. Underlying profit for the year fell to £671 million.

The renovated Pantheon store divides fashion floors into brighter, more clearly defined areas for different brands and product categories. M&S says the format will help it assess how to make its ranges easier to shop before applying lessons elsewhere in its estate.

The company currently operates 227 full-line UK stores selling food, clothing, homewares and beauty products. It aims eventually to reduce that network to 180 sites, closing some older outlets while opening a smaller number of new locations. At the same time, its food business is expanding: M&S plans 18 food-only openings this year and is targeting 420 directly operated food stores, up from 335.

Its next major London project is the planned redevelopment of the Marble Arch store at the other end of Oxford Street. The existing building is due to be demolished in 2027 and replaced by a 10-storey development containing retail space, offices and a gym. The work is expected to take four years, with M&S leasing a temporary store nearby.

The investment comes as the retailer reports stronger food and clothing performance. Food sales rose 16 percent in the latest three-month market tally cited by the source, while M&S holds more than 10 percent of the UK clothing and footwear market. Management nevertheless faces challenges including the cost and execution of warehouse projects, an overseas business still undergoing reform, and the long-term performance of its Ocado retail partnership.