West End landlord Shaftesbury Capital revels in Xmas sales lift

Shaftesbury Capital defied the gloom on the High Street as it cheered a ‘strong start’ to its critical Christmas trading period.

The West End landlord reported ‘high’ levels of shoppers across its estate which includes parts of Chinatown and Covent Garden.

The company said sales at shops, bars and other businesses run by tenants so far in the second half of the year were 16 per cent up on 2019 levels.

Sales were also 12 per cent higher than last year when rail strikes and anxiety over energy bills hindered many consumers from spending in the West End ahead of Christmas.

Chief executive Ian Hawksworth said: ‘Our excellent performance has continued into the second half, with a strong start to the Christmas trading period. The West End is one of the most vibrant global destinations with an unrivalled concentration of entertainment and cultural attractions.’

It comes as retailers including Ikea and Kurt Geiger have committed to new stores on nearby Oxford Street, fuelling hopes a turnaround is under way. Last week, HMV reopened its flagship Oxford Street store after a four-year absence as bosses hailed the area’s revival.

Shaftesbury Capital was created in a £5billion merger in March between landlords Shaftesbury and Capital and Counties.

The merged firm’s portfolio is made up of 670 buildings, including shops, offices and restaurants.

Shares surged 3.7 per cent, or 4.3p, to 120.7p yesterday.

But the boom has not been felt everywhere by retailers as Brits continue to feel the pinch. 

Elsewhere, figures painted a miserable scene on the High Street as lobby group, the CBI, said sales in November were lower than last year.

The report also found retailers expect sales to drop in December for the eighth month in a row and to fall short of ‘seasonal norms’.

A separate survey of 1,000 consumers by business advisory firm RSM UK found families were planning to spend 13 per cent less on Christmas this year.

And 26 per cent of consumers were planning to use a form of credit – such as a Buy Now Pay Later service – to fund their festive spending. 

And a report by Barclaycard said sales volumes on Black Friday were down 0.6 per cent on last year.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: ‘Despite retailers’ best efforts jamming inboxes full of promotions and offering in-store deals, Black Friday is likely to have left them feeling a little blue.

‘There is a chance that more bargain hunting activity in the lead up to the big weekend will have buoyed sales overall, but shoppers are clearly highly vigilant on price.’

Jacqui Baker, head of retail at RSM UK, said: ‘Families are having to make hard decisions this year as the cost of living continues to bite.

‘Retailers will have to work hard to encourage consumers to spend, potentially extending discounting through December to shift stock before the end of the Golden Quarter.’