Passengers on a bus travel under Christmas lights on Oxford Street in central London (Dominic Lipinski/PA)
(Picture: PA Wire)West End retailers are bracing for a “particularly challenging” Christmas despite it being the first without Covid restrictions in three years as shopper numbers and spending languish behind pre-pandemic levels.
Research from the New West End Company (NWEC), which represents 600 retailers, restaurants, hotels and landlords in the area, estimated that £1.55 billion will be spent over the eight-week Christmas trading period, 24% higher than in 2021, but still 28% lower than in 2019.
Footfall in the area is still only 83% of 2019 levels, it said.
Meanwhile, research from online discount site VoucherCodes found that overall retail spending across the country this festive season will fall by 3% on last year’s figure to £82.2 billion as the cost of living crisis deepens.
NWEC also blamed rising household costs, as well as a lack of high-spending overseas visitors, for its lacklustre predictions, and called on the government to reconsider the introduction of tax free shopping and extend Sunday trading hours.
Dee Corsi, interim chief executive of NWEC, said: “We know that this year’s festive season may be particularly challenging with the continued cost of living increases, and we’re expecting some families to be more cautious with how they spend. However, the West End is much more than shopping and there are plenty of festive experiences - such as our world-renowned lights - which we encourage families to visit and enjoy for free.
“ While I’m heartened to see the West End’s recovery continue to grow this winter, for us to succeed in the long-term we need to ensure that the nation’s high street and the wider country remains globally competitive.
“There are a number of simple routes to achieving this that the government is overlooking, or simply ignoring.
“Without an independent assessment of tax-free shopping and a review of Sunday trading hours, we risk putting London and the UK at a severe global disadvantage.”
Mayor of London Sadiq Khan also acknowledged that “helping the West End to bounce back from the pandemic is a crucial part of London’s wider recovery”.
He added: “Many West End businesses are facing another uncertain winter as they navigate the fallout from the pandemic and the cost of living crisis which is also impacting the cost of doing business.
“While I’m delighted we can now welcome everyone back to the West End, it is clear more needs to be done to ensure this vital part of the London economy returns to full strength after three challenging years.”
NWEC, along with a number of retailers, leisure operators and industry bodies, is calling on the Treasury to reconsider its decision to reverse plans to reintroduce VAT free shopping for international visitors.
It argues that since its abolition last year, other major world cities have benefited from a 20% price advantage over the UK, pushing Britain even further down the travel wish list for high net worth tourists.
It also wants the government to simplify the UK’s visitor visa system, and to extend Sunday trading hours in the West End and Knightsbridge - areas which typically attract international shoppers.
NWEC said those coming from overseas are “often disappointed” to find that stores are forced to close by 6pm on Sundays, limiting potential spending.
Opening longer could add £250 million of sales, it said.
Geoff Barraclough, Westminster City Council’s cabinet member for place shaping and economic development, said: “The virtuous circle that saw the West End ecosystem of big employers, tourism, culture, retail, and leisure each helping to sustain each other was broken during the pandemic – posing significant challenges.”
He said the council was working to try and attract more big-name brands to the area, and was offering short-term spaces to entrepreneurs to fill empty shop spaces.
“A thriving West End is in the national interest, and we need the government’s support,” he said.
