Frasers Group chief executive Michael Murray has warned that retailers are avoiding the West End amid sky-high rents and business rates.
Speaking to the Mail, Murray said: “I can understand why retailers aren’t investing there, it’s not the most profitable location.
“Oxford Street really needs investment and rents to come down to stimulate brands to increase their presence.
He added it should “really be a showcase of the best retail the UK has to offer”.
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Industry leaders have been calling for a revamp of the famous shopping strip in recent years.
Watches of Switzerland chief executive Brian Duffy told The Mail there was “no question that more needs to be done” to revive the West End shopping destination. He said: “Oxford Street is a problem.
“I would almost describe it as a bit of a national embarrassment.”
Earlier this year, data from Local Data Company (LDC) and Retail Week revealed Oxford Street is lined with more empty units than the average British high street.
A survey of the street revealed that 42 of Oxford Street’s 269 shops stood empty, a vacancy rate of 16% – more than the 13% average vacancy rate for high streets in central London and 14% for shopping streets across the rest of the UK.
Despite reporting 500,000 daily visitors as London’s busiest shopping street, post-pandemic Oxford Street’s shine has dimmed with famous brands shuttering stores on the strip including Topshop, Debenhams and House of Fraser.
Last month Westminster City Council unveiled its plans with New West End Company to offer rent-free shops on Oxford Street to small businesses as it looks to refresh the retail destination.
Up-and-coming brands, entrepreneurs and creatives who want to launch their first physical store can apply for a site on the famous street under the Meanwhile On: Oxford Street programme.
Those who manage to secure a spot will be given a six month tenancy in a rent free, fully fitted store and an over 70% reduction on business rates.
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