£10 billion spend forecast for West End if overcrowding and environmental issues are resolved

More than 200 Bond Street, Oxford Street and Regent Street retail businesses gathered today for the West End 2012 Retail Conference to hear consumer views on the area’s shopping offer and, most significantly, what one of the UK’s largest Business Improvement District – New West End Company – plans to do about it.

At the New West End Company annual event, which took place at the new BBC headquarters on Regent Street, global property adviser CBRE – who were commissioned to conduct the My West End Report, the first major consumer quantative and qualitative study for over five years – predicted an extremely positive economic outlook for the UK’s most important retail district, with a possible £10 billion annual turnover predicted by 2020. This would be an increase of £2.5 billion, with spend for 2012 predicted at around £7.5 billion.

However, in the My West End Report – based on 3,500 interviews with shoppers, 31% international and 60% domestic [the remainder were workers and residents] – CBRE also confirmed that consumer concerns regarding congestion and overcrowding, signal a need for green spaces and improved navigational facilities if the district is to keep its world class appeal among domestic and international shoppers.

Dame Judith Mayhew Jonas, Chairman of New West End Company, opened the conference stating: “The West End’s future economic prosperity cannot be taken for granted.  Whilst the CBRE report shows outstanding domestic and global support for the area in acknowledgement of the extraordinary era of positive change the district has undergone over the last five years, today we must be under no illusion that if we don’t deal with congestion and overcrowding issues, we will lose high value shoppers and millions, if not billions of pounds, of economic growth potential.

“On a positive note, each of the four Mayoral candidates are extremely committed to the West End and all have committed to working with us to remedy congestion and overcrowding  to safeguard the economic contribution the West End makes to London’s GDP.”

Jonathan De Mello, Head of Retail Consultancy at CBRE, who managed the report, added: “The West End offers not only an exceptionally strong retail offer, but also a character, history and atmosphere that is unrivalled anywhere in the world. Our research showed huge commitment to the West End from shoppers and retailers alike, but also highlighted key areas to be aware for the future, such as the potential for overcrowding. With 70 million more journeys expected into the West End following the opening of the Crossrail network in just six years’ time, it is vital that the area continues to evolve so that it remains the leading shopping and leisure destination in the world.”

Key findings by CBRE, who conducted the report, captured the ups and downs of shopper trends and views on the West End.