Retailers are once again racing to secure space on London’s iconic Oxford Street following its long-awaited pedestrianisation.
As many as 16 bidders are reportedly competing for the former House of Fraser site at 318 Oxford Street, with Canadian fashion retailer Aritzia seemingly the frontrunner.
The building, which has undergone a £132m redevelopment, forms part of a far wider regeneration of the street, which until recently, had been considered diminished in influence and as a go-to shopping destination.
Demand for Oxford Street space is also being fuelled by soaring rents and limited availability on neighbouring Regent Street, where rental costs have reportedly climbed around 40 per cent.
Retailers opting for Oxford Street could potentially save between 30 per cent and 40 per cent on occupancy costs, making it an increasingly attractive alternative for those seeking prominent West End locations.
The likes of Space NK and Abercrombie & Fitch have helped strengthen the street’s appeal as a flagship shopping destination, whilst the recent opening of the experiential Harry Potter store has been successful in drawing attention.
Oxford Street’s pedestrianisation was brought into effect on 26 October, and saw almost a kilometre of the street closed to cars, buses and other vehicles as part of Mayor Sadiq Khan’s £150m regeneration plans.
Early figures suggest the changes are already delivering results, with spending across participating Oxford Street stores jumping 28 per cent year on year during the first week, while footfall increased 16 per cent.
International visitor numbers also surged 42 per cent, offering retailers an early boost ahead of the Christmas trading period.
However, challenges remain, with further construction planned for 2027 and concerns over delivery access and the impact of traffic restrictions on surrounding roads.
The Oxford Street Development Corporation is overseeing the wider transformation, which aims to combine flagship retail with hospitality, leisure and improved public spaces.
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