Festive spending in the West End expected to reach £1.7bn
21 October 2024, London: Festive spending[1] is expected to deliver a £1.7bn boost to London’s West End, a 3.2% rise in spend compared to 2023, new economic modelling from the New West End Company reveals.
While muted UK consumer confidence means domestic festive spending is expected to grow just 1.6% year-on-year, an influx of international visitors to the capital is expected to drive international spending up by 5.8%, compared to 2023.
Flight bookings to London over the festive period are already 11% higher than in 2023, driven by visitors from the Gulf (+26%), followed by China (+20%) and the US (+19%). This follows a strong year for UK tourism, with international visitors to London up 9% in the year-to-date, bringing with them significant spending power.[2]
Overall festive spending is expected to reach its peak the weekend of 7/8 December, with consumers forecast to spend between £40-50 million across West End businesses. To cater to this surge in shoppers, New West End Company and Great Ormond Street Hospital Charity (GOSH Charity) are partnering to make 7 December a ‘Big Day of JOY’ - transforming Oxford Street into a hub of special festive experiences, including on-street entertainment and in-store activations.
While domestic spending is expected to gradually increase week-by-week from November onwards, international spending experiences a shorter and more pronounced burst, expected to peak during the last week of Christmas trading (w/c 16 December).
The district is also expected to benefit from a last minute gift rush, expected over the weekend of 21/22 December. Spend across the final pre-Christmas weekend will be dominated by last minute gifts and stocking fillers, with jewellery and watches, consumer electronics and health and beauty categories all expected to have their biggest single domestic sales days of the festive period over this weekend.
Dee Corsi, Chief Executive at New West End Company, commented: “The West End is a globally renowned destination for retail, leisure and hospitality, acting as a key driver of growth for the national and local economy all year-round. And this festive season, we are pleased to be forecasting year-on-year growth once again.
“International visitors, in particular, have been fundamental to the district’s recent performance - but much needs to be done to unlock this demographic’s full spending potential. The Mayor of London’s announcement of an ambitious vision for Oxford Street, backed by the Deputy Prime Minister, is an encouraging first step. What we need now is a comprehensive, national tourism strategy that secures the inbound tourism economy and returns the U.K. to global competitiveness once and for all.”
Mayor of London, Sadiq Khan, commented: “London is the world’s best destination for tourists, visitors and shoppers and it’s great to see the increasing number of returning international tourists spending in the capital, especially across the festive period.
“I am excited to be working with the new Government, Westminster City Council, local retailers and businesses on plans to boost the West End by transforming Oxford Street to its former glory, as we continue supporting London’s businesses to grow the UK economy and create a better and more prosperous city for all.”
Cllr Adam Hug, Leader of Westminster City Council, added: “Across the West End, the buzz is back after the lean years of lockdown. On Oxford Street, we have seen a steady conveyor belt of big-name retailers taking up space and the demise of the little-lamented candy stores. As a local authority we have done our bit by making life hard for unscrupulous traders while supporting innovative ideas like pop-up stores for small companies.
“These figures from New West End Company also show that London is retaining its crown as a leading global attraction, with people flying in to enjoy what the wider West End has to offer. A varied range of retail, theatreland, beautiful buildings and unbeatable nightlife – it all adds up to a Christmas cracker of a proposition.
“The council will keep doing all it can to ensure our high streets across the City enjoy the sound of jingling tills, and these retail estimates are indeed welcome early festive cheer.”
ENDS
[1] Festive spending relates to the months of November and December
[2] Jan 2024- Sept 2024
