London’s iconic shopping street, Oxford Street, is set to receive a significant boost in retail investment as part of its ongoing revitalization efforts. A report by CityAM reveals that up to £100 million will be invested in the key shopping destination by the end of the year, contributing to the wider trend of retail investment in central London, which is anticipated to surpass £1 billion in 2023.
The latest figures from BNP Paribas Real Estate show that £810 million has already been spent on retail investments in London in the first half of the year, with an additional £1 billion worth of deals in the West End. Notably, several high-profile deals have taken place on Oxford Street, along with the street’s two counterparts in the West End. These deals include the addition of popular brands such as Under Armour, Reserved, Footasylum, The Fragrance Shop, Pandora, and TAG Heuer, augmenting the retail lineup of Oxford Street.
Aside from private investments, Westminster City Council has launched a £10 million scheme to transform Oxford Street. The aim of the scheme is to support small businesses by offering them vacant stores for free and reducing their business rates by 70%. This initiative also seeks to address the issue of illicit candy stores that have plagued the street in recent years, replacing them with legitimate small business owners. Fergus Keane, head of central London investment markets at BNP Paribas Real Estate, underscores the strong demand for retail investments in traditional West End locations.
Despite facing challenges such as the rise of American candy stores and the departure of prominent tenants like Topshop, Debenhams, Next, Gap, and House of Fraser, Oxford Street is poised for a strong future. The street, which was once the busiest shopping thoroughfare in Europe, is gradually recovering from the impact of the pandemic. The revitalization scheme and the influx of new retailers demonstrate a positive trajectory for Oxford Street, indicating its potential to reclaim its status as Europe’s busiest retail hub.
James Ebel, vice-chairman at Newmark Retail, a London-based strategic retail property advisor, asserts that Oxford Street has reached the bottom of its cycle. Rents and business rates, particularly in certain areas of the street, are currently at their lowest point in nearly two decades. Many previously vacant stores have now been leased, presenting an excellent opportunity for occupiers to secure prime retail space in the heart of London.
Overall, the increased investment in Oxford Street and the wider retail sector of central London reflects a renewed confidence in the city’s retail landscape. Through the collaboration of private investors and public initiatives, Oxford Street is well on its way to regaining its status as a thriving shopping destination, solidifying its position as Europe’s busiest retail hub.
Useful links:
1. Oxford Street official website
2. BBC article on the revitalization of Oxford Street
