GPE, also known as Great Portland Estates, has played a crucial part in the rejuvenation of London’s West End shopping district. Despite footfall not yet reaching pre-pandemic levels, there has been a significant turnaround this year with major developments and the return of renowned brands opening flagship stores. GPE has been instrumental in these achievements by creating modern, multi-level spaces that incorporate heritage features when necessary.
One of GPE’s recent accomplishments includes securing a 10-year lease extension for VF Corp’s The North Face flagship store, expanding it by 33% to 9,700 square feet. In addition to this, they also secured a lease for the fashion brand Joseph, completing the repositioning of their Regent Street Kingsland and Carrington House locations. Other notable openings facilitated by GPE include Reserved, Pandora, and The Fragrance Shop on Oxford Street, as well as the prestigious Hanover development on Bond Street.
The resurgence of the West End can be seen in the impressive new store designs and lower rent prices due to the high level of supply. To gain further insights into this bounce-back, Fashion Underground interviewed Sarah Goldman, GPE’s head of Retail. With her extensive experience in the retail industry spanning over two decades, Goldman discusses the changes brought on by the pandemic and other factors.
In recent years, the West End faced challenges due to shifting working patterns, a decline in tourism, and tax-free shopping issues. Moreover, the influx of supply led to lower footfall as retailers reassessed their strategies. The presence of temporary “American candy store” pop-ups on Oxford Street reflected landlords’ attempts to mitigate business rates through short-term leasing. However, GPE actively sought to replace these stores with more desirable tenants, addressing the fragmented ownership issues on Oxford Street.
Goldman acknowledges that demand in the West End has significantly improved, with vacancy rates returning to pre-Covid levels. The surplus supply has resulted in lower rents, attracting both UK and international retailers. While fashion remains a dominant category, there has been an expansion in sectors such as food and beverage, competitive socializing, and home improvement.
The return of international brands to London has been driven by positive sales in the city and the successful vaccine rollout. Footfall is gradually recovering, with people spending more and quieter days being offset by increased activity on different days. Weekend footfall is also showing signs of recovery, although the absence of international spending poses a challenge. The elimination of VAT-free shopping for tourists has hindered the West End’s full recovery.
Overall, the West End is now buzzing with activity as major developments continue and prominent brands make a comeback. GPE’s involvement in this revival is evident through their successful leasing and asset management efforts. The district’s resilience and ability to adapt to changing circumstances highlight its ongoing relevance as a vibrant retail destination. The return of international spending and the reinstatement of VAT-free shopping for tourists will greatly contribute to the future success of the West End.
Useful links:
1. GPE Official Website
2. West End Shopping District Official Website
