Momentum on Oxford Street has been given a boost with a forecast anticipating that empty store numbers will fall over the next year, and a new majority ownership update for long-term occupier Selfridges.
It emerged yesterday that retail specialist Thailand-based Central Group will become the majority shareholder and gain control of the joint venture company for the operating companies within the Selfridges Group.
A spokesman for the upmarket department store said: “We welcome the stability of having Central Group as our majority shareholder, it demonstrates their ongoing and unwavering support of us.”
Looking at the whole of Oxford Street, where Selfridges has had a presence since 1909, real estate advisor Savills expects the vacancy level will decrease from 7.3% to 3.6% by the end of the third quarter 2024.
The firm expects the East end of the street, between Tottenham Court Road and Oxford Circus, to record the biggest decline in vacancy levels, from 4.3% today to 1.1%. The West section is set to fall from 9.4% to 5.5%.
The area was hit hard during the pandemic as shopper numbers plunged due to lockdowns and a number of high profile large tenants closed including TopShop and Debenhams. In 2019 pre-Covid the vacancy figure on Oxford Street was 4.4%.
Sam Foyle, retail director at Savills said the shopping destination has benefited "from business rates reducing enticing retailers, the ongoing recovery of domestic and tourist spend and some landlords investing to make properties more attractive".
The Elizabeth Line opening at Tottenham Court Road has also contributed to more footfall, while Westminster Council has looked to crackdown on candy shops store openings on Oxford Street.
Savills' Foyle added that 11 new openings have been secured on the eastern end over the last 12 months.
His firm is aware of eight more sites under offer or signed for that are planned to open.
Among recent openings is lifestyle brand MINISO. UK chief operating officer Saad Usman said some customers arrived as early as 5am to queue for the launch last Friday. He added: "We doubled the sales of our previous best opening day in the UK."
Accessories firm Kurt Geiger's CEO Neil Clifford said footfall at the Oxford Street branch that started welcoming customers in September is 50% ahead of its next best performing UK shop.
