What looked like a renaissance for the east end of Oxford Street appears to have stalled, but what are the prospects for a revival?

The east end of Oxford Street has long been the grotty part of the UK’s most famous shopping road. However, that was all supposed to change with the opening of Crossrail, now named the Elizabeth Line, which we were promised would be a catalyst for regeneration.

Tottenham Court Road station sits on the eastern periphery of Oxford Street and is a key station on the east-to-west London line – in fact, property advisor GVA predicted it would overtake Oxford Circus as the busiest station in the West End.

“I hear stories of three- to six- month leases, which is still better than empty units, and demand is coming from overseas”

Jace Tyrell, New West End Company

These promises of regeneration appeared to ring true when Primark set up an enormous four-floor, 82,400 sq ft flagship opposite Tottenham Court Road station in 2012.

But fast forward seven years and there is little sign of a revamped Oxford Street East when exiting Tottenham Court Road station. Instead, cheap perfume stores and sweet shops aplenty occupy many units at the very eastern end of London’s famous shopping thoroughfare.

Oxford Street east 3

Delayed trains and temporary tenants

There is some good news, however. Next, TK Maxx, New Look, Lush and Benetton are just some of the retailers that have decided this part of Oxford Street is a good bet, with all opening multi-level flagships over the past couple of years.

And that is perhaps the point. With the exception of TK Maxx, which opened earlier this year, all of the new arrivals predate 2019.

Jace Tyrell, chief executive of the New West End Company, says things appeared to have “stalled”.

The delayed opening of the Elizabeth Line has no doubt hindered progress.

Originally meant to open in December last year, there remains no hard open date for the new train line, which will run from Reading and Heathrow in the west to Shenfield and Abbey Wood in the east. The closest estimate is between October 2020 and March 2021.

The units that have become available recently have been snapped up by gift shops, selling all means of London-themed tat, and a plethora of sweet shops such as American Candy and Kingdom of Sweets.

American Candy Oxford Street

Meanwhile, very short leases are becoming commonplace. Tyrell notes: “I hear stories of three- to six- month leases, which is still better than empty units, and demand is coming from overseas.”

It may be better to have traders of whatever kind, rather than hoardings, but the temporary nature of what is on offer, and the ‘fly by the night’ shopfits, do little to improve the aspect.

There are also a lot of temporary traffic lights and constrictions in the road, which makes this part of the street unappealing for shoppers despite some of the bigger names that have taken up residence.

The roadworks tend to be concentrated towards the far eastern end of Oxford Street and has a lot to do with the construction of the delayed Elizabeth Line.

A damp squib?

CBRE senior director Luke Holland says while there have been successes, the regeneration of Oxford’s Street East may be on the verge of being a damp squib when it comes to making it a place that shoppers would beat a path to.

Market Halls

Market Hall will open in the old BHS building

“If you’d have gone back about three years there were plans for a lot of redevelopment. Some of them happened, but a lot of them have been put on hold. It just hasn’t really ignited,” says Holland. “There are a lot of blocks that are under single ownership that were going to be developed and now they’re not.”

However, some developments have come to fruition.

Tyrell points to the new Market Hall, similar to the ones in Victoria and Fulham, which is set to open in the old BHS building this autumn.

This is a major development, and the 37,500 sq ft, three-storey enterprise will offer seating for up to 800 casual diners with 12 independent food vendors.

This should be viewed in concert with the Arcade Food Theatre in Centrepoint at the far eastern end of Oxford Street. This one opened in late July and means a food bookending for that part of Oxford Street most in need of a facelift.

Arcade Food Theatre at Centrepoint

Arcade Food Theatre at Centrepoint

All of which should mean a flow of footfall along the street and, when coupled with the new stores that have got away from the starting blocks, there are a few reasons to be cautiously optimistic about the prospects for the area.

Tyrell adds that planning changes for Oxford Street to give it A3 status, which would allow more hospitality and hotels along its length, are in consultation, saying: “It’s a fundamental change in city policy.”

While this may change the face of Oxford Street, perhaps it is better than the plethora of sweet stores at the eastern end of the UK’s supposed premier shopping road.

The Brexit factor

There is also Brexit to be considered. Oxford Street is no different from any other part of the UK currently, and the uncertainty in the air has prevented some retailers from taking a punt on this area’s facelift being a success.

Holland says: “A lot of retailers are looking for certainty. When you throw in the fact that a lot of retailers don’t know where their margins will be in three months time, it’s not easy.”

Tyrell echoes the view: “There are certainly those who would like to get a different mix on the street with more hotels and restaurants, but Brexit doesn’t help. It is more challenging.”

“There will always be tenants for the right units at the right rent in the right place”

Luke Holland, CBRE

But one only has to look to Primark, whose Tottenham Court Road flagship is perennially busy, to see the potential for the area.

Perhaps, when Crossrail is up and running and Brexit is out of the way, we might see a revamped and revitalised east end of Oxford Street.

Sadly, that prospect does appear some way off, although as Holland notes: “There will always be tenants for the right units at the right rent in the right place. There are still deals to be done.”

Some things never change.

What’s in store for Oxford Street East?

Schemes in the offing

David Kenningham, dubbed Mr Oxford Street, founder of the eponymous property consultancy Kenningham Retail, says that contrary perhaps to appearances, Oxford Street east is not moribund: “It’s all still happening. There was a flurry of activity and now there’s a slight hiatus while the other developments come on stream.”

Looking at a map of the area and of buildings under development there does appear to be a lot in the pipeline, but most of it will not be available for retailers until 2021 and beyond:

1. Holden House, 54 -68 Oxford Street – 150,000 sq ft , timing to be confirmed, potential for 3-4 retailers

2. 700 88 Oxford Street – 33,000 sq ft, completion Q1 2021, likely to be 4 retail units

3. 134-140 Oxford Street - 45,500 sq ft, completion Q2 2023, space for 1 or 2 stores

4. 127-143 Oxford Street - 34,000 sq ft – completion 2023 with use to be determined

These are just a few of the developments that are taking place and all of them are under the stewardship of different owner/developers. Oxford Street and its eastern end remain as difficult to fathom as ever.