Oxford street, London: A 360-degree retail analysis
Written by Ángela ·
From Debenhams on Oxford street to Fenwick on Bond street, London’s retailing sector never run of the mill. London is a city for all shopping needs, ranging from luxury fashion brands to world-famous jewellery. The increasing number of shops and stores in London enthuses the curiosity to know the science behind the retail sector. To illustrate, Swedish fashion brand, Weekday, opened its first store on Regent street. Following this, H&M showcased yet another goliath store in East London. This blog aims to analyse a specific area in Greater London with data extracted from Geoblink’s Location Intelligence software.
The blog revolves around Oxford street; a popular street in the City of Westminster that stretches from Marble Arch to Tottenham Court Road. For our analysis, we are focusing on a 5-minute walking distance commute from the selected point:
“Near 293 Oxford Street, Mayfair, London, W1C 2DX, United Kingdom”
To begin with, who are the main players in Oxford street?
According to the data extracted from Geoblink, Oxford street bustles with 455 commercial markers which include the automotive, leisure, fashion, health, food and grocery industries. As a whole, the fashion industry bags up to 36% of the viable markets with 164 stores. The notable brand Warehouse has a strong presence, with 5 stores within our area of study. The fashion outlets of this street is four times more to the number of stores in England that hits a low at 8%.
Following the fashion industry are food and service industries at 24% and 22% respectively. Concentrating only on cafes, three Starbucks outlets are present within the region and another exists at a 49m distance from the selected point. Also, the area is home to two Italian restaurants (out of the 90 present in the UK):Bella Italia and Carluccios. Moving on to the service industry and focusing on the banking front, NatWest, Lloyds bank, Barclays and RBS are the top players among the 38 other banks in the area.
Thus, as we can see from the data, fashion, food and service sectors are the top 3 prominent players among the other commercial markets in the selected region.
What is the socio-demographic pattern?
The presence of top tier brands combined with the high commercial scene on Oxford Street paves way for an interesting socio-demographic analysis of the area. Below are six examples of data regarding the 560 inhabitants residing on the Oxford Street
Knowledge on the indicators presented above is needed for a retailer looking to expand his/her business in Oxford street. Why?
We will discuss three indicators drawn from our analysis below:
- Firstly, the high disposable income of the population under study signals high spending and purchasing capabilities. Also, within the same bracket, the educated population is high (3 times higher than the average of the country). This data could be of importance to a retailer looking to set up a luxury fashion store in the locality because people will be interested in the high quality products in such stores and will have the necessary purchasing power.
- Secondly, pedestrian traffic. The commercial traffic in the selected region is extremely high. This is of no surprise as Oxford Street is internationally known for its great tourist attraction. Surprisingly, despite the high traffic coming from commercial stores, fashion stores and malls, a considerable amount of traffic comes from the education and health sectors in the area. However, high traffic can be detected in Baker street and Beak street located within a 5-minute distance by foot, so what makes Oxford Street special?
- What lies on the other side of “very high” pedestrian traffic? In short, the fact that people stroll, flock and frequent a specific area in abundance boils down to two factors:
The popularity of area
- Presence of noteworthy shops (fashion, service and food).
Opening a store in a locality that bears high pedestrian traffic brightens the visibility of the store by magnetising more people, increasing sales and ultimately accelerating revenue with considerable leverage over other indicators.
The population is another indicator that fuels our analysis (here the average age is 39 years). This could be one of the critical indicators for a retailer thinking about the kind of bespoke store to bring to Oxford Street. Here, the percentage of single inhabitants is 51% compared to the 35% in a married/civil partnership. As there is a minimal difference between these percentages, it will be valuable for a retailer to establish stores that target both the groups of inhabitants.
Likewise, every indicator on the socio-demographic chart could add value to a business’s expansion strategy making it even stronger than the previous draft.
Take Warehouse for example. The British clothing retail chain, has 5 stores on Oxford street. Placing the brand amid the analysed demographics, we can say the brand works well with the statistics as it comfortably houses apparel for customers aged between 15 and 39. Furthermore, having five stores within the selected area allows the customers to encounter the brand repeatedly during their shopping spree thus inflating visibility. This was all thanks to Geoblink’s Location Intelligence software as it provided us with pedestrian traffic and tourist data.
If you are interested to know more demographic indicators that can add value to your business:
Transportation and drive time kindles business conscience
The feasibility of reaching a store by either car or on foot as well as the availability of an efficient transport system in a specific area is another factor considered by businesses. That being said, few well-known fashion stores such as Warehouse, Zara, French Connection or Lk Bennett are located at a 5-minute distance by foot while few others are situated at a distance that could be reached by tube. The area under study has two underground stations, Bond Street and Oxford Circus; making it easily accessible.
How can demographics empower marketing strategies? By knowing the prominent players and the rich socio-demographic data of Oxford Street, you have gained the first piece of your puzzle. What is the next dot to connect? Marketing strategies based on data. For example, using the indicators we have analysed, the following image gives you a basic idea of how to fuel your marketing strategies.
The Location Intelligence software for your business needs London secured the second position in the top 27 best cities to do business in the world, according to Business Insider article. In spite of skeptical views towards Brexit in the United Kingdom, the retail front appears to be healthy, keeping people’s commercial activities in line.
With Location Intelligence, we completed a 360-degree analysis of London’s most enthralling street hassle free. This is much more convenient than the traditional business expansion practices which requires an executive to frequent the location multiple times to record the above discussed indicators, wasting both time and money . Our software provides a solution for Retailers, SME owners, Franchises, FMCG and other business owners alike looking for an effective solution to expand their business with an appreciable Return on Investment (ROI)
Geoblink’s Location Intelligence software helps navigating your preferred location at ease with accurate demographic data. See it in action here.