Oxford Street: Vacancy rates back to pre-Covid levels as Euros and Olympics to give London a tourist boost
Commentators were quick to proclaim the end of brick-and-mortar retail and premier shopping districts such as Oxford Street following the coronavirus pandemic.
And until recently, they looked to be on the money.
However, recently, Oxford Street has staged a stunning comeback.
According to the latest data just two per cent of units across Oxford Street are now either vacant or let to “low quality” retail space.
The retail drag has been boosted by booming tourist numbers and big events, a trend that seems set to continue.
Dee Corsi, head of New West End Company, told City A.M she is confident the next few months will see a drive in footfall across the retail drag thanks to events such as the Euros and the Paris Olympics.
She said: “It may have been a wet start to summer, but we are confident that the next few months will see a surge in visitors to Oxford Street and the wider West End.
“We’ve got a fantastic summer of sport ahead, with the Paris Olympics likely to drive a spike in tourists visiting our capital.”
Just last week, the two-day Champions League Festival drove an uplift of 66 per cent week-on week in footfall on some parts of Regent Street.
Corsi added: “We know that visitors to the West End want more than just transactional retail – they want varied, immersive experiences that simply cannot be replicated online.
“Oxford Street is primed to deliver on this this summer, with experiences on the street ranging from John Lewis’ new rooftop restaurant to the soon-to-open Moco Museum at Marble Arch and Selfridges’ iconic beauty hall. There is, quite simply, something for everyone.”
East Side vs West Side
Oxford Street is effectively cut into two by property companies – the eastern end, from Oxford Circus to Tottenham Court Road, and west, from Oxford Circus to Marble Arch.
The eastern trunk is set to be boosted by the opening on Ikea at the site of the former Oxford Street next spring.
According to property agents at Savills, there has been a record 40 deals across the region in the past 12 months, and vacancy rates are in line with pre-pandemic levels.
Sam Foyle, co-head of global retail at Savills, said: “The reduction in [business] rates has made the street more affordable and has encouraged a strong mix of new retailers to commit to new stores in the street.
“There have been a record 40 deals on Oxford Street in the past 12 months, with a number of new deals coming through for the remainder of the year. Vacancy on the street is currently back in line with 2019 levels and competition for space has become fierce.”
It is a positive boost for the shopping district, and the wider London retail economy, which has suffered in recent years due to high inflation and shopping spending less.
High end retailers have also been feeling the pinch, as international visitors are reportedly ditching London due to the removal of VAT free shopping.