Plans by London transport bosses to pedestrianise Oxford Street, W1, could be good news for retailers and landlords.
New London mayor Sadiq Khan’s office says all vehicles will be banned from a 1.2-mile stretch between Tottenham Court Road and Bond Street Tube station by 2020. It is already largely car-free between 7am and 7pm, but is crammed with taxis and buses.
Research by Savills estimates the change could boost footfall by 22% and sales by 38.7%. This would mean 280 million people visiting the street each year.
If retail sales and profits increase, the rents landlords are able to charge and the value of their buildings are likely to follow suit.
Sam Foyle, Oxford Street specialist at Savills, says: “The pedestrianisation of Oxford Street would increase average dwell time and ultimately retail spend, attracting new retailers and prompting existing retailers to take additional units.
“In turn, this would generate rental uplift and also drive an improved retail and leisure offer in the surrounding side streets.”
It would be a further boon for the street, which is already anticipating a rejuvenation when Crossrail opens in 2018. The New West End Company, which manages the area’s business improvement district, has already predicted retail spend will increase by 27.8% because of Crossrail.
Marie Hickie, commercial research director at Savills, says: “The combination of the arrival of Crossrail and pedestrianisation of Oxford Street will help it to play catch-up with Regent Street, which has benefited significantly from the Crown Estate investing in the public realm.”
It is not the first time radical proposals to reduce traffic on the famous shopping street have been suggested and temporary trials have proved successful in attracting extra shoppers.
The New West End Company has been campaigning for more than a decade, and the earliest records of complaints date back to 1974, when Oxford Street was dubbed an “accident blackspot” by a traffic engineering consultant, who then called for it to be pedestrianised.
Challenges
Almost 170 buses an hour travel along or across Oxford Street. What will be done with these routes and how will this affect commuters who work in the 60% of space on the street used as offices? And how or when will shops be able to get deliveries?
The move has not received support from all corners and there are concerns that diverting people from buses could simply cause congestion elsewhere. Packed Tube and Crossrail trains may not make the street any more attractive to get to.
Richard Scott, director at niche retail agency Nash Bond, says: “I would be concerned if there were no buses. Where do the buses go now? Suddenly does New Bond Street suffer and does Wigmore Street become the new bus route? How would that work? It is not as simple as making it pedestrianised.”
New West End Company chief executive Jace Tyrrell says: “We need to make sure that we have assessed all options, including the impact on deliveries and staff on the street. It is complex, but what is really important is that it is not about diverting traffic, it is about reducing it.”
Westminster’s Labour councillors have already spoken out about the measures and their impact on the 10,000 residents living nearby.
Jason Williams, shadow cabinet member for city management and sustainability, says: “While we believe there could be benefits from plans to pedestrianise Oxford Street, it is vital this is done in conjunction with a review of bus routes so as not to move traffic and pollution onto residential streets north and south of Oxford Street.”
Work on the 1.2-mile stretch of road will be carried out in two stages to keep disruption to a minimum, and will come into force from the eastern section first. The first stage of works is scheduled to complete in time for Crossrail’s opening in 2018.
