The owners of Soho’s Carnaby Street are planning a major overhaul to restore one of London’s most famous addresses to its former glory when it drew “Dedicated Followers of Fashion” from all over the world.
Landlords Shaftesbury Capital, which own hundreds of buildings across Covent Garden, Soho and Chinatown, said it believed the modern Carnaby Street - a globally renowned epicentre of the Swinging Sixties cultural upheaval more than half a century ago - had unfulfilled potential.
In their top five hit “Dedicated Followers of Fashion” in 1966 the Kinks famously lampooned the "Carnebetian army" of fashion victims who paraded up and down the street.
In its 2024 financial result today the £5 billion company said: “Based on our consumer data and experience, the average spend and dwell time has the potential to be significantly higher. Accordingly, we are introducing concepts in Carnaby which should be supportive of rental growth over time.”
Plans for the pedestrianised street, where tourists were likely to bump into members of the Beatles, The Who or the Rolling Stones shopping in stores such as Lord John in its Sixties heyday, will be revealed later in the year and submitted to Westminster council for approval.
However Shaftesbury boss Ian Hawksworth said the shake-up was already underway with 13 new retail tenants in and around Carnaby Street signed last year including lifestyle brand PANGAIA with its first European standalone store, Brazilian fashion brand Farm Rio and Korean beauty store Pure Seoul.
The first food outlet on Carnaby Street for many years, boutique baker Donutelier, also opened in November “to give people a reason to stop,” said Hawksworth.
Details of the changes on Carnaby Street came as Shaftesbury unveiled strong figures for 2024, a year marked by solid growth in sales, footfall and rents.
Hawksworth said Covent Garden in particular was “so busy” with Christmas footfall up 6.6% and half term trading also particularly strong.
Sales were up 3.1 per cent year on year and are now between 20% and 30% above pre-Covid levels. Estimated rental values were up 7.7% to £250.6 million and the portfolio valuation was 4.5% higher at just under £5 billion.
The company said: “London and particularly our West End portfolio continues to display its enduring appeal as a leading global destination, with international arrivals now ahead of 2019 levels.
“Vacancy rates, not only in our portfolio but across prime West End retail units continue to reduce and are also back in line with pre pandemic levels creating competitive tension for prime space.
“Footfall has been consistently high, with the Elizabeth Line enhancing transport connectivity for visitors, shoppers, workers and tourists alike. Our West End portfolio is the destination of choice for both market entry and expansion, with occupiers seeking superior quality, sustainable space with high amenity value.”
Hawksworth said he had no sign of any impact from the looming National Insurance Contribution hikes on demand for hospitality or retail units.
He added: "We are delighted to deliver a strong set of results for 2024. Our West End estates continue to be busy and vibrant with high footfall and customer sales growth. There continues to be strong leasing demand with 473 transactions completed 9 per cent ahead of December 2023 ERV, with an excellent leasing pipeline. “
