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West End shoppers defy retail gloom
Jonathan Prynn, Consumer Affairs Editor14 Nov 2007
London is heading for a bumper Christmas in defiance of the consumer panic affecting the rest of the country's high streets.
West End retailers say the festive shopping season has got off to a storming start with takings well up on last year.
Large numbers of tourists - particularly Europeans taking advantage of the strong euro - are thronging to central London.
Massive investment in stores such as John Lewis in Oxford Street, Fortnum & Mason and Selfridges has also helped brighten the West End's once dowdy and scruffy image. A senior source at the revamped Fortnum & Mason said the Piccadilly shop took £1 million in a week this month for the first time in its 300-year history.
A spokeswoman for Selfridges said: "Trading is good, ahead of last year. There has been no drop-off at all."
Nick Tomlin, partner at the retail branding agency Tomlin Bean, said: "I have a sneaking feeling it's going to be a good Christmas for retailers in the South-East.
"The psychology is that, 'It's been a bad year, we need something to celebrate so we'll max out on the credit cards and worry about the bills later.'"
Small independent retailers in London, particularly food shops, also report exceptionally strong spending by customers. Retail experts say many Londoners want to enjoy their Christmas after a year of increasingly gloomy economic news - but warned of a hangover in the New Year.
Figures from the London Retail Consortium show that retail sales soared 11 per cent last month compared with a year ago. For the rest of country the figure was just one per cent.
Jace Tyrrell, chief executive of the New West End Company, which represents shops in Oxford Street, Regent Street and Bond Street, said: "Our footfall trend for London's West End throughout this year is largely in line with last year - that is, an upward trend from January to July, dipping slightly in August and September and then increasing again in October at the start of the run up to Christmas."
There are increasingly alarming signs that most of the rest of the country faces a bleak shopping Christmas.
Fashion chain French Connection became the latest victim yesterday when it warned that profits will be no better than last year's disastrous £4 million.
Clothing chain Next revealed last week that it had a "disappointing" October and warned the City of "uncertain" prospects for Christmas.
There is also evidence that thousands of shoppers are taking advantage of cheap flights to do their shopping abroad.
Online travel agency lastminute.com said short break bookings to Hong Kong were up 54 per cent on last year, while for New York they are 50 per cent higher.
