COMMENT Oxford Street has long been at the centre of retail innovation. Affectionately known as the “nation’s high street”, it remains a must-see destination for international and domestic visitors alike, and a coveted address for businesses and investors.
Nonetheless, in recent years it has faced challenges the likes of which the sector has not seen in decades. The global pandemic in 2019 accelerated nascent shifts in public expectations of work, life and play, and many bastions of British retail, sadly, struggled to evolve fast enough. But behind Oxford Street’s hoardings was a street undergoing a radical recalibration. Today, the green shoots of this transformation have firmly taken hold.
Primed for transformation
As a flagship retail destination, Oxford Street has always been primed to respond to changing consumer demands. We recently explored this in “Oxford Street: 2030”, our new report convening senior stakeholders across the street to discuss its future. Throughout these conversations, one thing was clear: not only was the street transforming at pace, it was doing so from a strong foundation.
Already, Oxford Street is the largest single component of the West End in terms of scale of offer and share of spend and visits. In 2023 alone, it captured an estimated £3.1bn in retail sales, or approximately 35% of West End sales as a whole – the highest share of any component part of the district, which includes Bond Street and Regent Street, two iconic retail destinations in their own right.
This creates a powerful halo effect, with at least 33% of those who visit Oxford Street also visiting either Mayfair, Bond Street or Regent Street. This matters – a strong and healthy Oxford Street benefits the whole ecosystem, and is a key reason Colliers’ LocateVenues ranking acknowledges the West End’s unique ability to attract domestic and international shoppers.
It is understandable then that it is no longer just retailers seeking West End space. Research from Colliers’ has found that the greatest increase in demand for West End space today is from food and leisure operators – borne out by recent additions to the street such as Krispy Kreme, Kebhouze, Frameless and Outernet. Placed alongside retail flagships, such as HMV, Selfridges and Under Armour, Oxford Street now offers a more varied experience than ever before – something that office workers in newly relocated headquarters are taking advantage of just as much as shoppers.
By serving the evolving demands of visitors, the West End and Oxford Street benefit from an environment which is more conducive to long-term, sustainable economic growth. It also meets an increasingly desired investment criteria: “busyness”. Where previously developers would invest in a retail, leisure or cultural asset, today the notion of a “busy place”, with a captive and diverse audience, is the primary driver.
As such, spaces on Oxford Street are now being considered as part of a wider ecosystem, working together to ensure future success. The street’s audience is no longer predominantly shoppers, but has broadened to include office workers, diners, leisure seekers and culture vultures. This is reflected in the prevalence of nine mixed-use developments in progress along the street, often with retail space at ground level and hospitality, leisure or office space up top.
Case study for success
Nowhere is this buzz more evident than Oxford Street East. As the beneficiary of both the Elizabeth Line at Tottenham Court Road, and the recent completion of a number of commercial developments, it has been the concerted focus of further investment. In 2023, it saw the opening of 12 new retail, leisure and hospitality brands, with footfall growing by 19% year-on-year, compared to 12% on the street as a whole. Put simply, it is a case study for success, and proof of the returns to be had for investors in the street.
In the years ahead, this investment will be complemented by the landmark Oxford Street Programme, a £90m investment into the street’s public realm. With enhancements including the widening of pavements, additional seating and improved greening, the programme is part of a bigger, once-in-a-lifetime opportunity to regenerate the world’s most iconic retail and leisure destination.
Fresh analysis from Colliers has found that the programme will deliver up to £2.8bn in additional retail sales on Oxford Street in its first five years post completion, representing between 5-10% in additional sales per annum, a sizeable boost in what is an already challenging economic environment.
It is also a savvy investment into a street which already contributes so much to London – 5% of the capital’s GVA, according to Westminster City Council. Of course, fundamental change to what is already an iconic destination will take time, but with all the component parts necessary to realise future growth, Oxford Street is well on its way to securing a bright future.
Dee Corsi is chief executive of the New West End Company
