Christmas spending in London’s West End expected to be ‘resilient’ despite Budget uncertainty

The New West End Company, which represents over 600 retail, restaurant and hotel property owners in London’s West End, forecasts year-on-year growth of up to 1.3% in festive spending across November and December this year, totalling £1.7 billion.

Despite the slight predicted growth, the figures represent the flattest year-on-year growth since the pandemic, with consumer uncertainty over the upcoming Budget having a major impact.

Domestic sales are expected to see modest growth of up to 0.9% year-on-year, while international sales remain “a primary driver of growth” across the festive period – with tourist spending expected to rise up to 1.9% versus the same period in 2024, despite the so called ‘tourist tax’ still not being addressed by the Government.

Encouragingly for West End businesses, consumer sentiment in the West End remains positive, with ‘on-street’ surveys conducted by New West End Company revealing that visitor ‘satisfaction’ and ‘loyalty’ are up year-on-year.

Some 77% of those interviewed were on a planned visit to the West End, compared to 58% in the same period in 2024, “underlining the strength of the district’s appeal”.

The West End has been bolstered by a raft of new openings and ‘experiences’ this year, including the long awaited opening of IKEA's first central London store, new flagships for Space NK, Rolex and Michael Kors, the return of Topshop with a pop-up in Liberty, as well as investments in new retail concepts for the likes of Pandora and Miu Miu.

Dee Corsi, Chief Executive of New West End Company, said: “The West End is an iconic destination all year round, but it becomes truly exceptional during the festive season. Our sales forecast reflects its resilience as a flagship destination, backed up by on-street surveys which reveal the depth of loyalty and affection visitors have for the West End. That said, it is clear that consumers are still feeling the pinch and, whilst the West End’s appeal to visitors is enduring, growth is stalling.

“This year’s late Budget offers a crucial opportunity for the Government to supercharge the UK’s appeal to tourists, boost domestic consumer confidence, and back British businesses, during the most important trading period of the year.

“Bold, targeted growth measures, such as exempting retail, leisure and hospitality operators from a ‘super tax’ business rates multiplier, are exactly what we need.”