The Crown Estate has issued a warning that Regent Street, a renowned shopping destination in London, could see an increase in empty stores as a result of the growing work-from-home trend. The shift towards remote work has led to a significant decline in footfall in central London, as people make fewer visits to retail areas. Data from Springboard recently revealed that footfall in the heart of the city was down 22% compared to pre-pandemic levels in early May.
Regent Street has historically been a thriving hub for retail in the capital, attracting major fashion retailers from different market segments. Empty commercial properties along the street have been rare. However, the CEO of The Crown Estate, Dan Labbad, predicts that the vacancy rate on Regent Street will increase in the coming year. Despite this development, Labbad remains relatively unperturbed, stating, “That doesn’t surprise or concern us.”
Robert Allen, the CFO of The Crown Estate, shared that footfall in central London has been consistently around 38% lower than pre-pandemic levels throughout the financial year. He acknowledges the challenges of revitalizing London but expresses confidence in the long-term future of Regent Street. While the UK may face a challenging period in the next 12-18 months, Allen believes that Regent Street will continue to perform well. He confidently stated, “Over the long term, I think we are very confident it will continue to perform, and it has been a great asset for The Crown Estate and, frankly, for the nation.”
Despite the concerns surrounding the impact of remote work and decreased footfall, there is optimism that Regent Street will remain a prominent retail destination. The Crown Estate, as the owner of the street, is well-positioned to navigate these challenges and ensure the long-term success of this iconic shopping area.
Useful links:
1. Regent Street Official Website
2. Regent Street on The Crown Estate’s Website
