THURSDAY 29 FEBRUARY: Fresh analysis released today by New West End Company, the Business Improvement District representing over 600 occupier and owner businesses in London’s West End, highlights the significant boost in sales set to be driven by the landmark Oxford Street Programme.
The analysis found that the £90 million programme, set to be delivered in partnership by New West End Company and Westminster City Council, will drive between 5% - 10% in annual sales growth for Oxford Street. This amounts to up to £2.8bn in total additional sales to the West End between 2027 – 2033, compared to a non-development scenario, based on the assumption that the works will draw in additional footfall and boost visitor dwell times.
The significant public / private investment into Oxford Street’s public realm coincides with a wider evolution in mix across the street, as owners and occupiers respond to shifting consumer expectations. Consistently strong West End consumer spend performance in both the F&B and leisure categories has coincided with an upwards trajectory of demand from operators in both these sectors, versus 2019.
NWEC’s upcoming report, ‘Oxford Street: 2030’, explores this evolution further and is set to be launched at MIPIM 2024 in partnership with Colliers, a leading real estate advisor. The report convenes leading voices from across retail, placemaking and property to discuss the once-in-a-generation transformation taking place on Oxford Street. It will also provide an in-depth exploration of how shifts in consumer expectations and the macroeconomic environment have triggered a necessary reappraisal of British retail.
An established flagship destination, Oxford Street is primed to respond to these changes. In addition to public and private investment into infrastructure, public realm and increased commercial demand for space, the presence of a number of high-quality, mixed use developments is set to further diversify the street’s offering. At Oxford Street East, which has experienced significant commercial development, footfall grew 19% year-on-year in 2023, compared to 12% growth across the street as a whole.[1]
Dee Corsi, Chief Executive, New West End Company, commented: “Oxford Street has long been at the epicentre of retail innovation – a must-see shopping destination for both international and domestic visitors, and a coveted address for businesses.
“Today, the street is redefining itself as a flagship destination for retail, leisure, culture and office space, with continued investments into infrastructure and increased demand from occupiers testament to the street’s enduring appeal and future potential.
“The Oxford Street Programme is a critical component of this once-in-a-lifetime transformation, and today’s figures confirm that the £90 million investment being made will generate significant added value for Oxford Street, and the West End.”
Paddy Gamble, Head of Retail Strategy & Analytics, Colliers, said: “The importance of Oxford Street to the West End cannot be underestimated. Its contribution to the district economically is sizeable, and the planned public realm enhancements and shift to a more varied mix on-street will act as a catalyst for long-term, sustainable growth.
“Our research shows that well thought-out, high-quality public realm programmes deliver undeniable returns on investment, when it comes to consumer consideration, dwell time and, ultimately, sales.”
Councillor Geoff Barraclough, Cabinet Member for Planning and Economic Development, Westminster City Council, added: “We need everyone to be on board with creating an Oxford Street fit for the future; collaboration and partnerships are key to delivering a district that works for visitors, residents, retailers, and investors. Oxford Street generates 5% of London’s GVA, so its economic success is critical to the commercial wellbeing of London and the wider U.K. economy.”
“We all need it to remain modern and attractive to tourists, investors, and people who call Westminster home. That is why our partnership with New West End Company to deliver the Oxford Street Programme is so pivotal, with the proposed improvements to the street securing its reputation as a global retail and leisure destination.”
Over the last twelve months, Oxford Street has welcomed over 20 global brands, including HMV, Dr. Martens, Under Armour and Krispy Kreme. High profile upcoming openings include IKEA, Pocket Planet and Moco Museum, underlining the street’s shift towards a more diversified offering.
ENDS
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[1] New West End Company, January 2024
