Oxford Street units offered to small businesses rent-free

Westminster City Council and the New West End Company have launched a new scheme that will offer small business owners a 70% business rates reduction, a store fit-out and business support to boost the area. 

The £10m scheme called Meanwhile On: Oxford Street will offer shops previously occupied by American candy, vape and souvenir stores to “innovative, cutting-edge and up-and-coming brands who will offer something exciting and new”.

The scheme is expected to run for three years and support around 35 brands, with the first opening in the autumn.

Stores can be used for single occupancy or as a concept store between multiple brands. Applications for the scheme are open now,  and although the units will be rent-free, successful applicants must be able to fund the “other associated costs of running a store for six months” and “show potential to launch long term after developing their brand through the programme”. 

Westminster City Council cabinet member for planning and economic development Geoff Barraclough said: “The West End has recovered quickly from the pandemic, but there are still too many vacant units and poor-quality occupants.

“That’s why we’ve set up Meanwhile On: Oxford Street to help fill the gaps with upcoming brands showcasing their innovative new ideas. I am excited to welcome new brands to one of the most famous streets in Europe, and support them with free rent, reduced business rates and help with promoting their business.”

American candy

American candy stores have grown in number significantly since 2017 and have come under fire for illegal activity and tax evasion, which the council estimates to be worth in the region of £8m to the taxpayer. 

At the end of 2017, there were 17 of these stores on Oxford Street, at the beginning of 2023 exclusive research for Retail Week found numbers had reached 29. 

Founder and chief executive of JDM Retail Jonathan De Mello said: “While a laudable initiative, the reality is that Westminster Council do not own and would be hard pressed to influence the owners of the vast majority of shops let by candy stores on Oxford Street.

“In order to effect real and tangible change, they would need to provide huge incentives to the landlords of those buildings in order for them to consider letting their shops rent-free to small business owners.

“This sort of scheme may work in smaller locations where local authorities own the majority of property – and can afford to think longer term about the tenant mix of a location as a whole – but will be harder to practically achieve in a location like Oxford Street, which has extremely fragmented ownership across multiple landlords; many of which want to achieve the highest possible rent for their properties.”

Last month Retail Week revealed the council’s plans for a ‘facelift’ of Oxford Street, with improvements including pocket parks, widened pavements and better lighting. Works are expected to begin in Autumn 2024 and are expected to cost in the region of £100m over the next three years, paid for jointly through the council and private funding.