London’s Oxford Street is undergoing a period of renaissance as retailers are investing in the street once again. However, there are still challenges to overcome before it can be considered to have returned to its former glory.
Oxford Street has faced challenges in recent years, with the closure of Debenhams, House of Fraser and Topshop during the Covid-19 pandemic, high vacancy rates which facilitated the rise of American candy stores, and high crime rates. Oxford Street has missed out on some key store openings in London, such as Sephora’s opening in Westfield White City and Zara’s latest flagship at Battersea Power Station.
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There has also been some positive momentum, with its vacancy rate currently estimated to be less than 5% by commercial property specialists CBRE – and the number of American candy stores is falling. This is particularly the case for the eastern end of the street due to new investments such as the Future Stores concept location and the full reopening of the Tottenham Court Road station with the addition of the Elizabeth Line. John Lewis’ investment in revamping its Oxford Street store should also instil a sense of optimism about the future of the location among other retailers.
The heavily delayed opening of the IKEA store in the former Oxford Circus Topshop flagship location has undoubtedly slowed down any revival of Oxford Street, causing uncertainty amongst consumers over the delay and inhibiting spending with 82,000ft² of retail space unutilised. The decision to open part of it for a ‘Hus of FRAKTA’ pop-up store, dedicated to IKEA’s ubiquitous blue bags, is opportunistic but could confuse consumers who may view it as underwhelming having waited for more than three years for the opening of a main store. Once opened in spring 2025, IKEA should bring a boost to Oxford Street, providing that its opening is well-marketed.
The west end of Oxford Street has arguably been the worst part in recent years, with the Debenhams and House of Fraser stores both having been located there, leaving large retail units empty and the number of American candy stores high. However, after a three-year legal dispute between the government and Marks & Spencer over the development of its Marble Arch store, the plans were accepted by Deputy Prime Minister and Secretary of State for Housing, Communities and Local Government Angela Rayner in early December 2024. Despite the debate over demolishing the building due to its heritage, the development is ultimately a win for retail, pulling shoppers towards the west end of the street, especially due to the resurgence of M&S in the last few years.
London mayor Sadiq Khan’s plans to pedestrianise the west end of Oxford Street would also be a huge boost to the location should they go ahead, including removing the opportunity for motorcyclists to snatch phones, a crime currently rife in the area, deterring shoppers and causing reputational damage. Pedestrianisation would encourage a more European-style shopping experience on Oxford Street, allowing easy wandering between shops, space for eateries and pop-ups or brand activations which could attract popular retailers such as Sephora and Space NK to open locations there.
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By GlobalData
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