Christmas spending in the West End is set to rise slightly to £1.64 billion this year as returning foreign visitors give a boost to stores and restaurants over the festive season, according to new forecasts today.
But Business group New West End Company (NWEC) said domestic expenditure would still be shackled by the cost of living squeeze, limiting the uplift on last year’s £1.55 billion.
Although this year’s figure represents a small cash increase it will mark a chunky fall in real terms after a year when inflation was running in the high single digits.
The forecast covers spending in November and December in Oxford Street, Regent Street, Bond Street and Mayfair.
Boxing Day in the West End is expected to be the first day when international spend exceeds domestic.
NWEC boss Dee Corsi, said: ““For many, time spent in the West End is what the festive season is all about. More than just shopping, the district offers the opportunity to make memories and create your own, unique festive experiences with family, friends and loved ones. And it is this reputation that has enabled the West End to remain resilient, despite the ongoing cost-of-living crisis which is squeezing domestic spending and dampening consumer confidence elsewhere in the U.K.
“We cannot afford to ignore that it is international visitors driving our recovery this winter. To this end, we are calling on the Government to conduct an independent evaluation of the impact of tax-free shopping. Christmas is a critical trading period for businesses both in the West End and across the U.K., and the reinstatement of tax-free shopping is a simple measure that would put us back on an equal footing with other festive destinations in Continental Europe.”
London Mayor Sadiq Khan said: “To keep international visitors coming back and support London’s businesses, we urgently need the Government to reinstate a VAT-free shopping scheme. This would not only help our retailers but also boost other sectors still struggling from the effects of the pandemic and the continuing cost-of-living crisis.”
Geoff Barraclough, Westminster City Council’s Cabinet Member for Place Shaping and Economic Development, said: “The prospect of increasing spending in the West End this Christmas is great news as the retail and leisure trade hits what is always a make-or-break period.
“It’s clear that the buzz is back with international visitors returning in larger numbers and big names like HMV returning to Oxford Street. Whether you are coming from abroad or the U.K., the West End is still an unbeatable destination for shopping, eating and going out.
“Working with our partners at New West End Company, we are going to build on this for an even stronger 2024 as we prepare to start work on the £90m overhaul of Oxford Street.”
