According to a report commissioned by the New West End Company (NWEC), London’s iconic West End is expected to recover its annual turnover of £10 billion by 2025. Despite facing economic uncertainty, sales in the area have already seen a significant increase of 109% compared to last year, with spending consistently surpassing footfall.
The NWEC, representing 600 retail owners including Bond St, Oxford St, Regent St, and Mayfair, is urging the government to provide additional support to ensure the continuous growth of the West End. They specifically call for reformed business rates and the relaxation of Sunday trading laws.
Colliers, the company responsible for providing data for the research, confirms that the West End is already on track to meet its turnover targets, even before the additional support announced in the chancellor’s September mini-budget. The NWEC attributes a significant part of this growth to the upcoming opening of the Elizabeth Line, which is predicted to be the primary mode of transport for 13% of visitors by 2023. The increased number of visitors facilitated by the new line is projected to boost the West End’s yearly performance by 7% by 2031, resulting in an additional sales revenue of £700 million to £800 million annually (or a cumulative total of £5 billion to £7 billion by 2031).
In order to further support this anticipated growth, the NWEC is advocating for the relaxation of Sunday trading regulations. Despite being the busiest shopping day in the West End, shops are currently required to close at 6 pm on Sundays. If these limitations were lifted, it is estimated that the two International Centers would generate approximately £350 million in additional sales each year, leading to the creation of 2,000 full-time equivalent jobs.
Furthermore, the NWEC suggests that the reintroduction of tax-free shopping on UK high streets could bring an additional spend of £2 billion to West End businesses each year. However, they urge the Treasury to take further action in order to fully capitalize on this opportunity.
Dee Corsi, interim CEO of the NWEC, expressed her optimism regarding the recovery of the West End, saying, “It is encouraging to see that we are still on track to hit £10 billion turnover despite the setbacks businesses across the West End have had to deal with this year.” Corsi also emphasized the significance of the Elizabeth Line and the potential impact of the opening of Bond Street station, stating, “We hope the opening of Bond Street station will act as further encouragement for Londoners to come and spend time in the district.”
Paddy Gamble from Colliers highlighted the changing shopping patterns and consumer behaviors since the pandemic. He noted that customers now visit the West End with a greater intent to make purchases, contributing to the rise in sales.
Overall, the West End’s resilience and potential for growth underscore the importance of continued government support to ensure its success as a thriving retail destination. By implementing necessary reforms and seizing opportunities like the Elizabeth Line and tax-free shopping, the West End can maintain its status as an attractive destination for both domestic and international visitors alike.
Useful links:
1) New West End Company
2) Colliers
