One of London’s oldest department stores is turning some of its floorspace into offices as part of a plan to weather the crisis on the high street.
The proposal by Mayfair institution Fenwick, a retail flagship on New Bond Street since 1891, was given the green light after Westminster council agreed shops are facing “exceptional” challenges.
Hugo Fenwick, a fifth-generation member of the shopping dynasty that founded the business, told planners: “Trade has become substantially more challenging in recent years due in large part to the structural shift of retail sales from physical stores to online platforms.
“Although mitigated by significant investment in the brand’s own multichannel platform, it is recognised that Fenwick will need to extend the building to provide a further revenue stream that will cross-subsidise the contribution from the department store.”
The changes involve the construction of four floors of offices, a late-opening fourth-floor restaurant and an office entrance on Brook Street.
About 10 per cent of the store’s floorspace will be lost although much of it will be “back of house” and so not accessible to the public. Around 3,500sq ft of shop floor will go, according to planning documents.
The proposal, which was recommended for approval by council officers despite them describing the loss of floorspace as “unfortunate”, was unanimously backed by members of the six-strong planning committee on Tuesday.
Committee chairman Melvyn Caplan said: “We realise retail is changing dramatically. These are exceptional circumstances and anything that can help a store like Fenwick to survive and thrive should be welcomed.”
Fenwick also has stores at Brent Cross and Kingston, alongside six other outlets nationwide.
Latest accounts show that Fenwick Ltd, which is still controlled by the founding family, made a £44.2 million pre-tax loss on total sales of £355 million, down 13.6 per cent, in the 12 months to January 2019. It also cut more than 400 jobs to save costs.
Read More
Fenwick is the latest major West End retailer to feel the pinch. John Lewis warned earlier this month that its annual bonus to staff could be scrapped this year. No one at Fenwick was available for comment.
