Authorities in the UK are taking a firm stance on the proliferation of American-themed candy stores on Oxford Street. Currently, there are approximately 30 of these stores under investigation for allegedly evading nearly £8 million in business rates. The emergence of this issue can be attributed to the consequences of the pandemic, which has resulted in numerous vacant retail spaces on what was once Europe’s busiest shopping street and a haven for fashion brands.
Although the commercial rents may be low, landlords and leaseholders are finding an advantage in leasing out their empty stores during this challenging period for retail. By doing so, they can avoid being responsible for paying business rates on those properties. However, it has been discovered that these spaces are rented out to intermediaries who then sublet them to the candy stores on licenses. This creates difficulty in identifying the actual owners of these businesses and determining who should bear the responsibility of paying the business rates.
Another concern related to these candy stores is the nature of the products they sell. Aside from conflicting with the overall profile of Oxford Street, Westminster City Council, as reported by the BBC, has confiscated approximately £474,000 worth of counterfeit, illegal, and unsafe goods from American candy and souvenir stores in recent months. Leader of Westminster City Council, Adam Hug, has described these stores as “eyesores” and has emphasized that they pose a threat to Oxford Street’s reputation as a shopping destination. Hug has also accused landlords of turning a blind eye to the issue of subletting, as it enables them to evade business rates.
A spokesperson for the council highlighted that the majority of these candy stores lack sufficient customer traffic to sustain a profitable business. Instead, it is suspected that these establishments are primarily being used to evade business rate payments and potentially engage in other unlawful activities. To tackle this problem, the council plans to intensify pressure on landlords and has already sent letters to several of them, urging them to consider the detrimental impact of these American sweet shops on Oxford Street.
The presence of these American-themed candy stores not only detracts from the prestigious shopping destination ambiance of Oxford Street but also gives rise to concerns of tax evasion and the sale of illegal goods. It is imperative for authorities to address these issues promptly in order to preserve the reputation of Oxford Street as a world-renowned shopping street and prevent further harm to the area’s image.
For more information on this topic, you can refer to the following links:
1. BBC News: Crackdown on candy stores evading business rates
2. Westminster City Council: Crackdown on candy stores evading business rates
