The West End has got off to a strong start to Christmas with sales up 12% on last year and 16% on pre-pandemic levels, one of its biggest landlords said today.
In a trading update Shaftesbury Capital, which owns properties across Soho, Covent Garden and Chinatown, said levels of footfall remained high despite the cost of living squeeze. The company was created last year through the merger of Capco, which is the dominant landlord in Covent Garden, and Shaftesbury, which has a large Soho estate.
Chief executive Ian Hawksworth, said: “Our excellent performance has continued into the second half, with a strong start to the Christmas trading period. The West End is one of the most vibrant global destinations with an unrivalled concentration of entertainment and cultural attractions.
“Footfall remains high and customer sales are tracking 12 per cent ahead of last year. There is excellent leasing momentum across all uses with 220 leasing transactions signed so far in the second half, at rents on average six per cent ahead of June 2023 ERV and a strong leasing pipeline.”
He said the company has signed a total of 440 leasing deals so far this financial year representing £30.2 million of rent at levels 9% ahead of last year. Vacancy remains are just 2.2 per cent.
New openings including luxury brands Hublot, Messika and Girard-Perregaux in Covent Garden’s Royal Opera House Arcade, while performance wear brand Hoka opened its new London flagship store in James Street. Balibaris, the menswear label, launched its first European retail location in Floral Street.
The latest figures come amid evidence that central London enjoyed a solid Black Friday weekend with sales generally tracking ahead of 2022. Susannah Streeter, head of money and markets at investment platform Hargreaves Lansdown, said: “For now, consumers still appear to be flexing considerable spending muscle, according to early indications of Black Friday sales. Expectations are high for volumes on Cyber Monday, with signs that shoppers have ringfenced budgets to take advantage of the wave of deals.
“How these spending patterns will wash up overall isn’t clear, with the discount window for the promotional event even wider this year, and it could herald a weaker period in the run-up to Christmas.”
Jenni Matthews, marketing and insights director at analysts MRI Software, said that central London, historic towns and regional cities “witnessed significant rises in footfall from the week before, largely driven by consumer activity on Black Friday.
“Festive events in cities and towns, alongside HMV’s return to Oxford Street, likely played a role in these numbers as consumers looked to make the most of the day and create memorable experiences with loved ones.”
