A major transformation of Oxford Street begins as a half-mile section of London’s iconic shopping thoroughfare closes to traffic, marking a significant step in a £150 million plan to enhance public spaces and boost the street’s appeal to both domestic and international visitors. The pedestrianisation, stretching from Selfridges to Ikea, aims to revitalize an area that has faced economic challenges over the past decade.

The initiative, set to take effect today, seeks to position Oxford Street alongside global retail destinations such as New York’s Fifth Avenue, Rome’s Via del Corso, and Paris’s Avenue des Champs-Élysées. London Mayor Lord Sadiq Khan described the street as “our nation’s high street,” emphasizing its importance in the capital’s commercial landscape.

Oxford Street has endured a difficult period punctuated by the collapse of long-established department stores Debenhams and House of Fraser, along with the economic impact of the COVID-19 pandemic. Vacancy rates peaked at 13.7 percent in 2022, while average retail rents on the western end of the street dropped sharply from £1,100 per square foot in 2016 to around £600 during the pandemic, according to property consultancy Savills.

Landlords responded to the downturn by offering rent concessions and extended rent-free periods, which contributed to an influx of less traditional retail operators such as souvenir and American candy shops. This trend further affected the street’s reputation, a situation exacerbated by the UK government’s decision to end tax-free shopping for international tourists.

Despite these setbacks, recent developments signal a turnaround. The former Debenhams and House of Fraser premises have been partially converted into office spaces, and a new local development corporation has been established to accelerate planning and approval processes. These changes have helped restore confidence among businesses and investors.

Dee Corsi, chief executive of the New West End Company, which represents over 800 retail, hotel, and property stakeholders in central London, highlighted Oxford Street’s role as a key economic driver for the UK. “Whether you’re from the UK or if you’re an international visitor, you will have heard of Oxford Street,” Corsi said, underscoring the street’s enduring prominence.

Retailers have broadly expressed support for the pedestrianisation scheme, despite some opposition from residents concerned about altered transport routes. John Lewis’s chief operations officer, Naomi Simcock, called the project a “massive opportunity” to enhance the shopping experience amid rising competition from other global retail hubs. John Lewis has maintained a presence on Oxford Street since 1864.

Adding to the international dimension, Chinese brands such as Minsio and Pop Mart have recently joined established names like Zara, Nike, and Warner Bros in committing to flagship stores on the street. Savills reports that 39 retail deals were signed in the past year, with vacancy rates now falling below 1 percent.

Sam Foyle, co-head of global retail at Savills, noted that Oxford Street remains unique in central London for offering extensive retail space within architecturally interesting buildings, providing brands an opportunity to distinguish themselves in a competitive market.