What: London Mayor Sadiq Khan launches a campaign to rescue Oxford Street, including plans for pedestrianisation and major public-private investment.

Why it is important: The initiative demonstrates how coordinated urban policy and investment can reverse the decline of iconic retail destinations in the face of changing consumer behaviour.

London’s Oxford Street, once a flagship shopping destination, has faced a period of managed decline due to the rise of online shopping, the growth of out-of-town retail centers, and the exit of high-profile retailers. In response, Mayor Sadiq Khan has initiated a campaign to revitalise the district, highlighted by plans to pedestrianise a key stretch of the street and ban vehicles, including buses, between Oxford Circus and Marble Arch. This move, strongly supported by both the public and major retailers, aims to increase footfall, retail spend, and create a more vibrant, accessible environment for shopping, leisure, and outdoor events. The transformation is underpinned by more than £300 million in private investment, new store openings, and strategic redevelopments, which have driven vacancy rates to historic lows. Experiential events, such as the one-day pedestrianisation preview, have further demonstrated the potential of placemaking to re-engage consumers and restore Oxford Street’s status as a world-class retail corridor.

IADS Notes: Oxford Street’s recent decline, driven by the rise of online shopping, out-of-town retail centers, and the departure of high-profile retailers, has prompted a coordinated response from both public and private sectors. The Mayor of London’s intervention, including the confirmation of plans to pedestrianise Oxford Street in June 2025, has been met with strong support from major retailers such as Selfridges and IKEA, who see the initiative as a catalyst for revitalisation. This policy shift is complemented by significant private investment, with over £300 million committed to new developments and store openings, reducing vacancy rates to historic lows of 0.5% by May 2025. The district’s transformation is further accelerated by experiential events, such as the one-day pedestrianisation preview in September 2025, which showcased the potential of outdoor activities and placemaking to increase footfall and retail engagement. These efforts, alongside the impact of infrastructure projects like the Elizabeth Line, have helped Oxford Street rebound from its post-pandemic slump, demonstrating how strategic leadership, urban policy, and innovative retail concepts can collectively rescue and reimagine a flagship shopping destination.

Sir Sadiq Khan begins fight to “rescue Oxford Street”