West End Retail 2020 Becoming the world’s number one retail destination
Cllr Philippa RoeLeader of Westminster City Council
Chair, West End Partnership
The success of the West End is of paramount importance to Westminster City Council, with
exciting planning underway to build on the area’s historic and successful economic legacy. Through
better and greater collaboration with our partners, including New West End Company and the West
End Partnership, drawing on their skills and unique knowledge of the area, we are creating a blueprint that will invigorate the West End, bringing greater
economic prosperity not just to London, but the country as a whole, while making a tangible
difference to the lives of people who live, visit and work in the West End.
Sadiq Khan Mayor of London
London’s vibrant West End is an important contributor to the city’s economy, supporting
jobs and attracting visitors from across the world. Over the last ten years the New West End Company
has done a first-class job of supporting this area’s interests. In line with my pledge to be the most
business-friendly Mayor of London ever, I will do all I can to ensure the West End thrives.
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London’s West End is a much treasured part of British heritage and culture and a leading global shopping and leisure destination. The iconic symbolism of the West End attracts millions of visitors from around the world each year to shop across our district in Bond Street, Oxford Street and Regent Street.
New West End Company is a leading voice for the West End’s retail and property sector which makes a multi-billion pound contribution to the UK economy. Over the past decade New West End Company has worked in partnership with members, partners and stakeholders to invest £50m into the area, driving the transformation of London’s retail heartland. We are proud of what has been achieved during this time.
Today, we are on the verge of even greater change. The imminent opening of the Elizabeth line will increase gross
development value by at least £2.5bn, boosting retail sales in the area by £10bn annually for the first time – an average of £27m each day. The new line will bring an estimated 60m more visits to the West End, adding to the 200m already made to the area annually.
However, other factors have also been at play over the last ten years: changing consumer shopping trends and the evolution of online retail; purpose-built shopping destinations in Asia and the Middle East; greater competition in London’s retail offer; increased business costs, heightened security threats, more pressure on public spaces and air quality, all combine to threaten our future growth.
It is in this context, and as a core supporter of the West End Partnership and its 2030 vision, that we have developed our renewed West End Retail 2020 strategy.
A new era for London’s West End
Sir Peter Rogers, Chairman
Jace Tyrrell, Chief Executive
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Sir Peter RogersChairman
Jace TyrrellChief Executive
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Our vision for a New West End
To make the West End’s retail district the world’s first choice for shoppers, retailers and investors.
Our key delivery commitments over the next five years:
1. To secure the West End as the world’s number one retail district
2. To be an effective champion and influencer of policies to deliver economic growth
3. To be an authoritative voice on global retail districts
4. Evidence our impact over time with increased sales and enhanced values
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Mike Brown MVOCommissioner, Transport for London
New West End Company is a key partner as we continue to support the West End’s extraordinary
productivity and global competitiveness. The opening of the Elizabeth line in 2018 will be a significant
moment, bringing thousands to world class stations at Bond Street and Tottenham Court Road. Working
together, with Westminster City Council and other partners, we have a unique opportunity to transform the look and feel of Oxford Street and the wider West
End, making it even more attractive as a shopping, entertainment and leisure destination.
Paul Lorraine UK General Manager, Longchamp & President of The Regent Street Association
New West End Company plays a key part in uniting the West End’s retail heartland.
As President of The Regent Street Association I have seen the part they play raising awareness of this
world leading street both in the UK and abroad.
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New West End Company, Europe’s largest retail led Business Improvement District (BID), was established to drive forward Bond Street, Oxford Street and Regent Street to become the world’s top shopping and leisure destination.
Through collaboration with both our members and key partners over the past 10 years – including Westminster City Council, Transport for London, The Mayor of London, Metropolitan Police and the Street Associations – we have acted as a catalyst for delivery and change within the West End’s retail heartland.
The journey so far
£50m investment made by New West End Company over the last 10 years
15m shoppers joined our traffic-free events
£8m raised in sponsorship, generating £500m incremental spend
£100m worth of UK and global media coverage achieved
London Luxury Quarter launched and new brand identities created for key West End streets
1.6m visitors attracted by digital platforms
Tourist spend up to £3.3bn each year 1
20% reduction in bus traffic achieved
300 business events, seminars and networking receptions held
£15m leveraged for public realm improvements
100 way-finding signs installed across the West End
Source: 1. HDH
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Marks & Spencer has long supported the New West End Company and is delighted to
continue that support. The West End is one of the world’s great
centres of retail excellence, attracting customers from around the world and around the corner.
Two of our most important flagship stores have been part of what
makes the West End special for many years. We are delighted to
continue this support and work with the New West End
Company for our customers and colleagues alike.
Steve Rowe Chief Executive, Marks & Spencer
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Sources: 1. HDH, 2. Global Blue, 3. TfL 2015, 4. Savills, 5. London Datastore
Where we are today
Bond Street, Oxford Street and Regent Street drive the UK retail sector.
Our growth rate is double that of the rest of London’s and we continue to build on this each year.
90% increase in turnover in ten years, growing from £4.7bn in 2005 to £8.8bn in 2014
1
600 stores including 244 flagships and 218 international brands
An average of £24m is turned over on a daily basis
Average international sales value 35% higher than elsewhere in the UK
2
640,000 daily visitors enter the West End through its six underground stations
3
96% of retailers would recommend the West End as a place to trade
4
150,000 workers employed in the West End alone, 3.3% of London’s total workforce
5
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However, challenges remain.
Sources: 1. New West End Company Charter for Growth, 2. Savills Global Retail Destination Index 2016
West End businesses contribute £28bn to London’s GDP and pay £2.1bn in taxes (excluding corporation tax)
1
£200m is raised in business taxes every year across Bond Street, Oxford Street and Regent Street, but 96% is kept by the Treasury
Only 7% of London’s taxes are retained by the Mayor to be reinvested in London’s development
1
Costs on businesses are set to rise even further with the impact of the 2017 business rate revaluation, national living wage and apprenticeship levy
We fall behind other global retail destinations on public realm investment and the quality of our facilities and amenities
2
Air quality continues to be a key concern to the health and safety of shoppers, workers and residents
2
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David L Shaw OBEHead of the Regent Street Portfolio, The Crown Estate
Chairman, Property Steering Group
The Crown Estate has been a supporter and member of New West End Company from the start.
What is good for the West End is good for Regent Street. The recent success in the creation of a Property Owners
BID to run alongside the Retailers BID is a great step forward. Now New West End Company not only can
cover all the key short term objectives of “safe & clean” and destination marketing but look to the future through investment in public realm and seeking
to attract overseas inward investment from retailers and property owners alike. New West End Company
continues to be a force for good for the West End Community both in the short and medium term.
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Our 2020 strategy
An influential business voice
01. Champion West End retail sector to all levels of Government
02. Maximise stakeholder support for policy changes to improve commercial performance
Drive retail trade
03. Lead campaigns that drive global competitiveness and prosperity; business rates reform, extended Sunday trading hours and remove barriers for tourism spend
04. Improve air quality by delivering freight and waste consolidation
05. Deliver world quality street management and shoppers services
06. Implement an integrated destination marketing and commercial revenue plan
Enhance asset values
07. Campaign for policies that create jobs and long-term economic growth
08. Improve the public realm of key shopping streets; including traffic reduction, upgrade of public spaces and improved pedestrianisation access
09. Maximise the benefits of the Elizabeth line
10. Promote the West End to investors and occupiers, enhancing the area’s reputation and investment opportunity globally
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Working with our businesses and partners, we have ten key milestone targets to achieve in the next five years:
10 key targets for 2020
50% vehicle reduction in the core West End
£10m Bond Street improvement plan delivered
£4.5m commercial income raised annually to match retail BID levy
Increase visitor dwell time by 30 minutes
£3m direct spend generated a year from ‘By Appointment’ service
£500m capital investment and 10 new global retail openings
£100m in media coverage
2,000 new West End jobs created with Recruit London and local apprenticeships
10% sales uplift from major events and campaigns
85% member satisfaction
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Andy StreetManaging Director, John Lewis
It’s critical that we all work together to make the step change
needed to future proof the West End as a key international
shopping destination. This can only happen through close
collaboration with all retailers in the sector addressing the future
major challenges that the area faces as well as having a very clear vision of what the West
End can be if we all work hard and invest in it. New West End
Company is one of the drivers to make this happen.
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New West End Company’s BID area.
London Luxury Quarter – a joint initiative with Heart of London Business Alliance.
Published by New West End Company, Morley House, 320 Regent Street, London W1B 3BEInformation correct at the time of printing. May 2016 Data © OpenStreetMap contributors. Licensed under the Open Data Commons Open Database License. Design © Mapbox. Licensed according to the Mapbox Terms of Service.
The Elizabeth line will:
Bring 60m more visits to the West End per year by 2020 1
Increase gross development value by at least £2.5bn 2
Boost retail sales to £11.25bn annually 1
Sources: 1. HDH, 2. TfL
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Delivering with our partners
For further information please contact
Jace TyrrellChief Executive
T 020 7462 0680E [email protected]
@newwestendnewwestend.com