London’s iconic West End shopping district is gearing up for a significant surge in spending during the upcoming holiday season, despite cautious domestic shoppers. The pivotal factor contributing to this boost is the return of international visitors in substantial numbers, even as challenges persist related to the end of tax-free shopping for them.
The New West End Company (NWEC) forecasts a substantial spending influx of up to £1.64 billion during the Christmas trading period in the West End. Alongside this optimism, there is a resounding call for the government to reinstate tax-free shopping, recognizing its immense potential to reinvigorate the retail sector.
Notably, the projected £1.64 billion is an addition to the substantial spending anticipated in other major shopping districts, including Knightsbridge, Covent Garden, and the prominent London malls, such as the two Westfields.
NWEC serves as the representative body for a vast network of 600 retailers, restaurants, hotels, and property owners across the West End. This network encompasses renowned areas like Oxford Street, Regent Street, Bond Street, and Mayfair. The surge in spending follows the impressive outlay of £1.55 billion during November and December in the previous year.
However, despite the overall spending growth, the ongoing cost-of-living crisis and high inflation are expected to prompt a cautious approach among domestic shoppers, mirroring the shopping patterns observed in 2022.
West End retailers can anticipate an initial surge in domestic spending on Black Friday, as savvy shoppers seek out the plethora of deals and discounts available across the district. NWEC predicts that domestic spending will peak on December 23, a Saturday, providing families with an ideal opportunity to make the most of the final weekend before Christmas.
To enhance the allure of in-person shopping, a series of events are being planned for the area. For instance, a festive ice rink in Hanover Square, nestled between Oxford Street and Bond Street, will be introduced for the first time.
NWEC further foresees that Boxing Day (December 26) in the West End will mark the first day when international spending surpasses domestic spending. This suggests an extended festive shopping period for international visitors as they explore the West End’s offerings beyond Christmas Day. This development is positive for businesses seeking to maximize sales during this critical trading period.
Dee Corsi, CEO of NWEC, underlined the significance of the West End during the festive season. She emphasized the unique experiences and memories that the district offers, making it a central part of the festive season. Corsi also highlighted the crucial role of international visitors in the region’s recovery and called on the government to conduct an independent evaluation of the impact of tax-free shopping. The reinstatement of tax-free shopping is seen as a straightforward measure that would align the West End with other festive destinations in Continental Europe.
Furthermore, this move could potentially provide Britain with a competitive edge, particularly if EU visitors can access VAT refunds. It positions Britain as the sole major shopping destination in Europe offering tax-free shopping.