Photograph: Joe Stubbs
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One year on LDC (Local Data Company) has revisited the latest data to investigate what has changed since 2023 and discuss what we can expect to see from this key shopping street in the future.
Oxford Street endured a turbulent year and was rarely away from the headlines, for all the wrong reasons. Westminster Council’s attempts to stamp out American Candy stores, Marks & Spencer’s well publicised planning dispute with Michael Gove (now resolved in M & S’s favour), the continued debate on the abolishment of VAT free shopping for visitors to the UK and even a viral Tik-Tok which caused JD Sports to be targeted for theft in August all caused headaches for retailers and landlords alike during 2023.
However, data from early 2024 indicates a turnaround for Oxford Street, hinting at a recovery for the area. Increasing numbers of workers are returning to the office for larger portions of the week, the new Elizabeth Line station opened and a proposed £90m investment to widen pavements and make other improvements will all have been music to the ears of the landlords in the area. Additionally, Oxford Street was positively impacted by the reduction in business rates which meant rates were cut by up to 40% on some properties on the street, improving affordability for retailers.
The main concern regarding Oxford Street in recent years was the proliferation of the so-called “American Candy Shops” which blighted the street and took over large numbers of units offering low quality or even illegal products.
The number of these stores peaked in 2019 and 2023 at 29 and various attempts have been made by Westminster Council to clamp down on the illicit trading associated with these businesses. These actions appear to have paid off, with the number of stores dropping to 24, the lowest number seen on the street since 2018. It is expected that this number will continue to fall as reputable retailers begin to take up space once again.
Oxford Street saw vacancy rates soar post-covid, increasing every year through to 2023, where the of the cost-of-living crisis caused consumers to reduce spending on non-essential items. The abolishment of VAT free shopping for tourists dealt a further blow to the area in 2019, with many visitors taking their spend elsewhere in Europe where these discounts were still on offer.
However, in a positive turn of events vacancy rates on the street have made a remarkable recovery, dropping back to 9.3% by February 2024, the lowest levels seen since 2021. Several new openings by household brand names and new international entrants throughout 2023 meant the cloud over Oxford Street is showing signs of clearing.
Oxford Street could also see an influx of independent brands as New West End Company launched a partnership with Westminster Council offering up to 35 small and creative businesses a chance to have a store on Oxford Street rent free for six months. These businesses will inject a new buzz and vibrancy to the area and should attract vast amounts of new visitors.
