FIFTH of Oxford Street shops now boarded up with ‘no hope of recovery’

One fifth of shops on London‘s Oxford Street are now boarded up with ‘no hope of recovery’ with more than 50,000 retail and hospitality jobs set to be lost when the third lockdown ends, an industry group claimed today.

Some 57 of 264 stores on the world-famous road are already permanently shut with revenue falling by more than 80 per cent to below £2billion in the 12 months from March 2020 compared to the same period a year earlier.

The New West End Company, a lobby group which represents hundreds of businesses in the area and provided the data, warned that the ‘globally unique West End ecosystem is beginning to break down’.

Its chairman Peter Rogers has urged Chancellor Rishi Sunak to provide further financial help – including targeted funding projects, extending a payment holiday on business rates and allowing tourists to reclaim VAT again.

He claimed that the West End, which is also known for being the centre of the capital’s theatre and entertainment industry, has suffered a tougher financial hit from the coronavirus pandemic than any other part of Britain.

A boarded up and closed store on London’s Oxford Street as the retail sector continues to be devastated by the pandemic

A woman wearing a face mask walks past a boarded up and closed store on London's Oxford Street as the crisis continues

A woman wearing a face mask walks past a boarded up and closed store on London’s Oxford Street as the crisis continues

A woman wearing a face mask stands outside the shut and boarded up Debenhams department store on Oxford Street

A woman wearing a face mask stands outside the shut and boarded up Debenhams department store on Oxford Street

Pedestrians walk past closed shops on London's Oxford Street although a Ben's Cookies outlet (on the right) remains open

Pedestrians walk past closed shops on London’s Oxford Street although a Ben’s Cookies outlet (on the right) remains open

Mr Rogers told Bloomberg: ‘Left to market forces alone, the West End will recover but not for many years and not before irreparable damage will have been done to Britain’s global reputation.’

It comes as the British Retail Consortium revealed the UK street has record levels of empty shops after 4,000 stores permanently shut their doors in the pandemic.

What percentage of shops are now vacant in the regions of Britain? 

  1. Greater London 10.7%
  2. South East 12.4%
  3. East of England 13.4%
  4. South West 14.1%
  5. Scotland 14.4%
  6. East Midlands 15.2%
  7. West Midlands 15.6%
  8. Yorkshire and the Humber 16.7%
  9. North West 16.7%
  10. Wales 18.7%
  11. North East 18.8%

Source: British Retail Consortium 

There are now approximately 40,000 empty premises across the UK, leading experts to warn the pandemic risks turning scores of high streets into ghost towns.

The BRC said the vacancy rate of 13.7 per cent was the highest since records began in 2012. The figure has increased for ten consecutive quarters, from the start of 2018, when 11.1 per cent of premises were vacant.

The shift to online shopping, accelerated by the pandemic, and the sky-high cost of business rates has pushed thousands of businesses to the brink and forced a string of big name brands to shut shops.

Former high street titan Debenhams has been sold to online retailer Boohoo without its 124 department stores, meaning it will disappear from the high street completely.

And 400 Topshop stores face closure, putting 13,000 jobs at risk, after Sir Philip Green’s Arcadia empire went bust in December. Retail experts said the loss of big brands threatened the whole ecosystem of the high street.

Independent retail analyst Richard Hyman, a partner at TPC, said: ‘That vacancy rate is going to go much higher when the business rates holiday and furlough ends, leaving massive gaps on high streets up and down the country. It’s hard to see who is going to come along and fill those gaps.’

Helen Dickinson, chief executive of the BRC, said: ‘With the country in and out of lockdown, the forced closures of thousands of shops, and consumers reluctant to visit town and city centres, it is unsurprising that the number of shuttered stores continues to rise.

‘Over the past two years, one in every 50 outlets has permanently closed, and this number will only go up. The big increase in vacancy rates during the crucial Christmas quarter serves as a stark reminder of the pandemic’s impact.’

The British Retail Consortium said the UK shops vacancy rate of 13.7 per cent was the highest since records began in 2012

The British Retail Consortium said the UK shops vacancy rate of 13.7 per cent was the highest since records began in 2012

This British Retail Consortium graph shows shop vacancy in Britain - split by shopping centres, retail parks and high streets

This British Retail Consortium graph shows shop vacancy in Britain – split by shopping centres, retail parks and high streets

A man wearing a face mask walks past a closed Sports Direct shop on Oxford Street as non-essential stores remain closed

A man wearing a face mask walks past a closed Sports Direct shop on Oxford Street as non-essential stores remain closed

A man wearing waterproof clothing walks past a boarded up and closed shop on London's Oxford Street in the rain

A man wearing waterproof clothing walks past a boarded up and closed shop on London’s Oxford Street in the rain 

A closed entrance to the Debenhams flagship store on Oxford Street in London, which is now permanently shut

A closed entrance to the Debenhams flagship store on Oxford Street in London, which is now permanently shut

The Centre for Retail Research found that just over 16,000 shops closed their doors in 2020, suggesting that around 12,000 premises were filled by other shops, or services such as nail salons and gyms.

Its director, Professor Joshua Bamfield, said: ‘It’s going to get a lot worse before it starts getting better. Bricks-and-mortar retailers have been hit hard by the lockdown, and every high street is probably going to have to shrink. 

‘That’s the only way they can cope with stores closing. Many of the shop workers who are sitting at home may not have jobs to go back to. It’s harsh, but it’s the reality.’

In time shuttered stores may be converted into offices or homes. Last year John Lewis announced it was converting the upper floors of its Oxford Street shop into offices as it could no longer justify the space.

The pandemic has already ripped through the high street, leading many of the country’s best-known brands to shut stores. 

People walk along Oxford Street next to shutters at the flagship John Lewis store as non-essential shops remain closed

People walk along Oxford Street next to shutters at the flagship John Lewis store as non-essential shops remain closed

A pedestrian walks past a sale sign at a JD Sports store on Oxford Street as non-essential shops are forced to remain closed

A pedestrian walks past a sale sign at a JD Sports store on Oxford Street as non-essential shops are forced to remain closed

A closed sign in the window of a branch of McDonald's on Oxford Street in London during England's third national lockdown

A closed sign in the window of a branch of McDonald’s on Oxford Street in London during England’s third national lockdown

A government coronavirus advert on the big screen at a near deserted Piccadilly Circus in London, pictured today

A government coronavirus advert on the big screen at a near deserted Piccadilly Circus in London, pictured today

Boots expected to close 188 of its 2,600 stores last year, Hays Travel is shutting 89 stores and Paperchase is closing 37 of its 127 stores.

TM Lewin, Oasis and Karen Millen have disappeared from the high street entirely, while Cath Kidston has lost all but one of its 60 stores after falling into administration.

Marks & Spencer has long-standing plans to shut 85 department stores by 2024 as it tries to beef up its online business.

As many as 200,000 jobs were lost last year in retail, with many less being created in warehouses that service online shops.

Another 200,000 are expected to be lost this year as the business rates holiday comes to an end, threatening to push thousands of firms, which are currently unable to open, to the brink.