Industry figures have flagged concerns that the fragmented ownership on London’s Oxford Street will impact Westminster City Council’s fresh drive to entice quality retailers back to the shopping area.
The council has partnered with New West End Company to offer up-and-coming brands and entrepreneurs the chance to open their first physical space for six months rent-free on the street.
The deal also includes a more-than-70% business rate reduction.
Retail placemaking consultancy Someday Studios has been appointed to deliver the multi-million-pound, three-year project, called Meanwhile On: Oxford Street.
Crushing candy stores
The campaign forms part of the council’s “fairer economy” agenda to invite new brands to the city’s high streets, with the aim of reviving spaces vacated by low-quality occupiers including American candy shops.
The vacancy rate on Oxford Street was 16% in March, according to LDC data, with 42 of 269 shops standing empty.
Jonathan de Mello of JDM Retail praised the initiative as “laudable” but highlighted that the council did not own the “vast majority of shops let by candy stores on Oxford Street”, and would therefore be “hard-pressed” to influence their owners.
“To effect real and tangible change, they would need to provide huge incentives to the landlords of those buildings in order for them to consider letting their shops rent-free to small business owners,” said de Mello.
“This sort of scheme may work in smaller locations where local authorities own the majority of property – and can afford to think longer term about the tenant mix of a location as a whole – but will be harder to practically achieve in a location like Oxford Street, which has extremely fragmented ownership across multiple landlords, many of which want to achieve the highest possible rent for their properties.”
De Mello said the solution for rejuvenating Oxford Street involves removing the “twin issues of congestion and pollution via part or total pedestrianisation”.
The council should also “hold landlords accountable where they let their shops to candy store operators that then avoid paying business rates due”, he added.
Redevelopment plans
“There is a lot of redevelopment planned for the street, and lower business rates will help encourage better quality occupiers in the longer term. However, this will happen despite initiatives such as these, not because of them,” de Mello said.
Geoff Barraclough, councillor and cabinet member for planning and economic development, said: “The West End has recovered quickly from the pandemic but there are still too many vacant units and poor-quality occupants.
“That’s why we have set up Meanwhile On: Oxford Street to help fill the gaps with upcoming brands showcasing their innovative new ideas.”
Long-awaited plans for giving Oxford Street a “much-needed facelift” also went to public consultation this week.
Westminster City Council and NWEC have proposed public realm improvements along the 1.8km length of the street, from Marble Arch to Tottenham Court Road, W1.
The Oxford Street Programme aims to improve the “overall appearance and usability of the street” by increasing pedestrianised space, enhancing lighting and adding more green areas with seating.
The consultation will run until 31 August.
Not far enough
Richard Scott of Nash Bond said: “The new Oxford Street proposals continue a long evolution of upgrades.
The street, in particular east of Oxford Circus, has seen great change and improvement with new developments completed and leased.
“As many developers seek global occupiers for new buildings West of Oxford Circus, the shopping environment is key in attracting the best brands. The proposals do not appear to go far enough in addressing the requirements of a modern global shopping thoroughfare, however, providing no areas of pedestrian footfall only.”
NWEC chief executive Dee Corsi said: “The proposed enhancement of Oxford Street’s public realm infrastructure is part of a bigger, once-in-a-lifetime, opportunity to regenerate one of the world’s most iconic retail and leisure destinations.
“This partnership between NWEC and WCC is happening against a backdrop of wider, positive shifts in the market; from the progress of ambitious, multi-use redevelopment projects to the signing of new global flagships, and the return of iconic brands such as HMV.
“We are already seeing increased footfall and dwell time as a result of the Elizabeth Line, which underscores the need for an enhanced visitor experience that will encourage more visitors to come more often and stay for longer.”
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