London’s West End on track to recover within two years, report says

London’s West End is expected to make a speedy recovery from the pandemic as consumers return to the luxury shopping hub, according to a new report.

The upmarket district in Central London, which prior to 2020 was one of the world’s most popular hotspots for deep-pocketed tourists, is on track to achieve turnover of 8.6 billion pounds in the next 12 months, according to global property consultancy firm Colliers.

The new report, commissioned by New West End Company (NWEC), also predicts the district will recover to its historic annual turnover of 10 billion pounds within the next two years.

Fast forward to 2025, and the shopping hub is predicted to surpass pre-pandemic levels by 14 per cent - or by a further 1.4 billion pounds.

Figures from 2021 show spending in the West End was up 30 percent from 2020, but was still only 46 percent of pre-pandemic levels.

It's perhaps unsurprising that domestic generated sales are recovering most quickly, and are expected to exceed 2019’s levels within the next 12 months.

Things are looking less bright, however, for non-domestic spending, due to a lack of high-spending overseas visitors, which is expected to hold back the recovery.

NWEC calls for more government support

“Nearly two years on from the start of the pandemic and the road ahead for the West End looks promising with the long-anticipated opening of the 19 billion pound Elizabeth Line set to turbocharge our recovery,” said NWEC chief executive Jace Tyrrell in a statement.

“Whilst it is heartening to see domestic customers filling our high streets with optimism once again and travel restrictions gradually disappearing, we can speed up the nation’s recovery greatly by incentivising high spending tourists to return to our shores,” he said.

The NWEC, which represents 600 businesses on Oxford Street, Regent Street, Bond Street and Mayfair, has been calling on the government for more support to help it recover from the pandemic.

The business partnership has asked for a simplified visa process, a reconsideration of the decision to abolish tax-free shopping and an extension of Sunday trading hours to help entice international visitors.

It previously warned that The West End district is at a “significant disadvantage” compared with other international shopping destinations, such as Paris and Milan, which offer visitors preferable visa terms.

In October, NWEC announced a planned 5 billion pound investment into the West End over the next five years to diversify the district’s offering and “bounce back” from the pandemic.