MAKING A GREAT CITY GREATER
For further information please contact: Richard Dickinson Chief Executive
New West End Company Morley House 320 Regent Street London W1B 3BE T 020 7462 0680 F 020 7462 0688 E richard.dickinson@newwestend.com www.newwestend.com/renew
GREAT CITIES AREN’T BORN, THEY’RE MADE London’s West End is a shopping magnet, attracting visitors from all over the world, driving jobs and growth and boosting London’s economy. Bringing together the energy and experience of businesses in this flagship retail hub, and drawing up a clear vision for the future through the New West End Company, is essential to its continued success. BORIS JOHNSON MAYOR OF LONDON
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200 MILLION VISITS A YEAR £7.6bn ANNUAL SPEND 120 INTERNATIONAL BRANDS 217 FLAGSHIP STORES RETAIL PROPERTY VALUE £3.5bn 4
Contents SHARE OUR VISION
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A THRIVING WEST END
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YOUR PRIORITIES
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5 YEARS – A REAL RETURN
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OUR FUTURE PLAN – UK’S RETAIL HEARTLAND
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What We Pledge To Do Now
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Attract & Promote
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Welcome & Discovery
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Leadership & Development
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PRIORITIES – THE THREE MAIN SHOPPING STREETS 40 Bond Street
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Oxford Street
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Regent Street
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GOVERNANCE
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District Map
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Meeting Business Criteria
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Measuring Performance
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Company Constitution
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Property Partners
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Company Structure
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Finance & Operating Agreements
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Using Your Vote
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BUDGET
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SHARE OUR VISION
a West End that is the ďŹ rst choice for shoppers whether from home or abroad a West End that is clean, safe, welcoming and hassle-free a West End that is the envy of the world 6
convert billions of Olympic viewers into millions of pounds of sales promote, improve and safeguard the world’s prime retail district be your authoritative voice inuencing and pressing for positive change 7
A GREAT GLOBAL CITY NEEDS A THRIVING WEST END London is a city of international stature and at its heart lies the world’s leading retail destination. With its unique blend of global, fashion and luxury brands, world renowned hotels, restaurants and celebrated attractions, the West End has always made a major contribution to the economy of the capital and the nation. It remains unrivalled as a place where people aspire to live, to work and to visit. New West End Company was established over a decade ago as Europe’s largest retail led Business Improvement District (BID), to champion the interests of over 600 retailers, property owners and other businesses in Bond Street, Oxford Street, Regent Street and their connecting streets. Richard Dickinson and Dame Judith Mayhew Jonas
Our brief was to bring about change in an area that represents the largest concentration of retail and property estates in the world and we have delivered real returns and tangible results. Much, however, remains to be done. Together, we can shape an even better future We have already shown what can be achieved by working together, with Government, the Mayor of London, Westminster City Council, Transport for London and many others, towards a collective vision for our area. The specific and exciting challenge now is to build on the legacy of London 2012 and to prepare ourselves for Crossrail and beyond. That will demand further investment, even better urban management and strong business leadership. New West End Company is uniquely placed to deliver all three. We are committed to protecting your interests, to promote the prosperity of the District as a whole and to ensure that the West End continues to be a dynamic economic driver for London and the UK.
RICHARD DICKINSON CEO, NEW WEST END COMPANY
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New West End Company’s aims and objectives are bold. We continue to deliver real tangible results in the largest and most dynamic concentration of retail and property estates in the world. DAME JUDITH MAYHEW JONAS CHAIRMAN, NEW WEST END COMPANY
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YOUR PRIORITIES
IN THE LAST THREE MONTHS, NEW WEST END COMPANY AND OUR STREET ASSOCIATION PARTNERS HAVE MET WITH MEMBER BUSINESSES TO LISTEN TO YOUR NEEDS AND PLAN FUTURE PRIORITIES. YOU TOLD US YOU WANT… 10
More money in your tills and feet on the street Spectacular footfall events and global media moments, with more of these being traffic-free Seamless shopper connection, embracing digital channels and positioning our District as a must-visit location A warm welcome and sense of discovery through a dedicated team of Red Cap Welcome Ambassadors Hassle-free, less congested shopping streets that are enjoyed not endured A drive to continue to reduce the volume of crime in the area Further investment in quality public spaces with less traffic, particularly buses A strengthened retail and dining offer with promotion to new international growth markets, both consumer and investor A robust partnership delivering benefits from insight, influence and business involvement A valued network that connects retailers and property owners to the authorities and the wider West End 11
5 YEARS: 2008/12 – A REAL RETURN
HIGHER FOOTFALL & SALES 12
10 million more shoppers and £300m incremental spending from Traffic-Free events
Retail sales in the District consistently outperforming the UK
5 million visitors attracted by digital platforms & 60,000 West End dedicated subscribers
Some
£3m sponsorship & commercial income invested back into the district
3,000 press articles stimulated in both UK and Global Media with a value of £40m
Development of the London Luxury Quarter to attract high spending shoppers 13
5 YEARS: 2008/12 – A REAL RETURN
800,000 visitors
A total of assisted by Red Cap Welcome Ambassadors A strong partnership with the police to deliver a
61% reduction in smash & grab crime Over 1 million pieces of chewing gum removed and 15,000 miles of pavements washed A cleaner West End with 87% of shoppers believing the area to be cleaner than three years ago* Crime Intelligence Partnership which has helped to secure regular annual First ever shopper reductions in crime Information Kiosk on Oxford Street with planning approval for a visitor pavilion 14
* OMD Research December 2011
SAFER, CLEANER & MORE WELCOMING STREETS 15
5 YEARS: 2008/12 – A REAL RETURN
A STRONG VOICE District’s retail and property interests at local, London and national level, stimulating progress on key areas of interest such as Sunday trading and Chinese visas Representing the
£6m of TfL and other funding secured to improve areas such as Marble Arch, East Oxford Street, Princes Street, Argyll Street, Ramillies Place and South Molton Street Some
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£4m makeover of Oxford Circus with UK’s first diagonal crossing
TfL funding secured for a
20% reduction in bus traffic in sections of
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Oxford Street
in partnership with The Crown Estate and Westminster City Council
200 business seminars, briefing and networking events with support from the Mayor of London, Over
the Home Secretary and the Metropolitan Police Commissioner 17
OUR FUTURE PLAN Great Portland Estates very much supports the continuation of New West End Company. Politicians, local businesses and the public can be in no doubt they have made a difference helping to cement the West End’s status as a world renowned retail destination that is without equal. TOBY COURTAULD CHIEF EXECUTIVE, GREAT PORTLAND ESTATES PLC
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WHAT WE PLEDGE TO DO NOW We aim to ensure that the West End’s retail district remains an unrivalled international destination. The popularity of the area means significant day to day management challenges but also demands a strategic approach to guarantee the District’s longer term success. The three objectives below aim to address head-on the issues identified by shoppers, retailers, property owners and others. The Plan provides significant and additional funds to support the District.
Attract & Promote
Increase incremental sales through events and promotions Become one of the world’s most digitally connected retail destinations Grow the level of individual spend and push the consumer profile up-market
Welcome & Discovery
Continue to drive down the level of crime and ensure the main streets remain clean and safe Offer shoppers a great welcome with the right information at the right time Increase return on investment by reducing business costs
Leadership & Development
Provide the momentum for change through business leadership and authoritive insight Work with partners to reduce the levels of traffic Develop proposals to upgrade the streets and identify more places where shoppers can take a break
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I feel that it is important as a community that we work together to strengthen our appeal to the global shopper, ensuring London’s West End maintains its reputation as the premier destination in the world. Clearly, New West End Company drives this vision and is the framework for our future plans. I encourage retailers to continue to support the company as we work to continue to make the West End the retail destination of choice. PAUL KELLY MANAGING DIRECTOR, SELFRIDGES GROUP
Selfridges - Artisan du Chocolat
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ATTRACT & PROMOTE The first choice for shoppers & investors
Harnessing the Strength of our Retail Brands
Even closer marketing links with our District’s flagship retailers, international brands and destination stores will be utilised to drive additional sales, raise global awareness, attract new customers and increase repeat visits. Campaigns that highlight the main stores will be coordinated around the core retail calendar with PR initiatives to protect and build the destination’s reputation. Individual streets will promote their unique offer and also be highlighted in umbrella activities.
Stepping up to the Competition
The District needs to continue to reinvent its offer to remain relevant and competitive. Other cities at home and abroad also offer customers the choice of shopping in appealing and well managed environments. PR activity will be at the forefront of ensuring the District continues to be positioned in consumers’ minds as one of the world’s top shopping destinations. Traffic-free events have delivered over £300m incremental spending over the last five years and are vital to build awareness and create sales. Further traffic-free events to elevate the concept to the next level will be considered in partnership with Westminster City Council and Transport for London. This could include shopping festivals, parades, quality Christmas markets, wider closure footprints and Summer Streets events, adapted from New York City, encouraging more regular traffic-free environments at weekends. Further to the successful street dressing put in place for the Diamond Jubilee and the Olympic Games, an annual themed programme to regularly improve the look and feel of the streets, using banners and other dressing, will be developed by individual streets.
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West End to the World
The hospitality industry is a key part of the offer and closer partnerships with retailers and hotels will be developed. The post-Olympic age will spur an increase in international arrivals from 2013 to 2016. We will maximise the opportunities of new growth markets with the following types of activity: In-room collateral, including apps and other e-media, to activate visitor spending Marketing partnerships between retailers and branded hotels to unlock additional spending of key groups such as corporate and luxury markets Shop & Stay packages in conjunction with principal event sponsors and retailers to extend length of stay and deliver additional spending Investment in digitally-led marketing promoting ‘money can’t buy’ offers to loyal leisure visitors to increase repeat trips
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ATTRACT & PROMOTE
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Connecting with the Multi-channel Shopper
We want the District to become one of the world’s most connected destinations for shoppers, offering an unprecedented choice of digital information and insight, making navigating and browsing the District easy. Shopper services will be developed to drive footfall and sales conversion. This will include social media channels, online loyalty programmes and smartphone apps with integrated mapping, all harnessing advanced mobile technologies.
Developing London’s Luxury Quarter
The London Luxury Quarter includes leading brands and flagship stores along Bond Street and connecting streets and arcades in Mayfair and St James’s. The London Luxury Quarter brand enables the area to be differentiated internationally. Key markets will include the Middle East, China and Brazil and include promotions with leading luxury and boutique brands, bespoke shopper services and online guides with the five-star hotels. Establishing the quarter globally to investors and travel trade will be a priority as well as showcase opportunities with our members overseas.
The Wider West End - Galleries
Marketing activity will be developed to harness, involve and draw on the West End’s leading auction houses, galleries and exhibitions which uniquely provide a further reason to visit. Tours and exclusive experiences will be offered and ‘Hidden Gems’ collateral developed. Oasis streets such as Ramillies Street, featuring the new Photographers’ Gallery, and the Lanes of Mayfair will be promoted. We will support a regular event in Savile Row to highlight men’s tailoring and fashion heritage.
Welcoming Back Lost Shoppers & Increasing Repeat Visits
Activity to continue to win back lost shoppers and increase repeat visits will include PR, promotions, hosted media events, themed campaigns and collaborations with neighbouring attractions, theatres and galleries. Christmas events will be reinvigorated with the potential of a West End-wide Christmas celebration which could see all festive lights switched on in one amazing evening. With the agreement of Westminster City Council, further commercial partnerships can be developed to support these types of events. Fashion will remain a strong theme and partnerships will be developed with London Fashion Week and individual retailers.
The support that New West End Company gives to retailers in the West End is outstanding. It provides a great forum for us to get together - often with landlords and other interested parties - to discuss issues and to plan how best to promote the West End. It’s a well led, tight team, that has produced some great results. MARK HENDERSON CHAIRMAN, LONDON LUXURY QUARTER AND GIEVES & HAWKES
Gieves & Hawkes - Silk Tie
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New West End Company has offered consistently useful information and support from both a marketing and day to day operational perspective, sharing insights on general retail trends in this area. I particularly enjoyed rolling up my sleeves alongside our baristas in support of their campaign to clean up Oxford Street in May. KRIS ENGSKOV MANAGING DIRECTOR, STARBUCKS UK & IRELAND
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Starbucks - Cappuccino
New West End Company provides a real step change for Regent Street and the West End. It has achieved much in the past few years. We must continue to work together as we collectively push the politicians and authorities to support the West End as a key retail driver for the economy. NIGEL WHEATLEY HEAD OF RETAIL & MARKETING, HAMLEYS
Hamley’s - Backfire Trucks
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WELCOME & DISCOVERY Attracting shoppers through great marketing can only be successful if the streets are safe, clean and well managed. Much has been achieved over the last five years but improvements are still needed. The District will benefit from further improvements to cleanliness, often singled out by shoppers as one of the key issues. Three areas will be the focus: look & feel, safety & security and cleansing & maintenance.
Look & Feel
Better coordination of road-works by utilities and other public authorities, working closely with Westminster City Council, to ensure utilities provide clear timetables and improved communications to retailers Improvements to worksites and hoardings throughout the District with common defined standards and an agreed management regime Improvements to the management of retail product launches, street promotions and retailer events Preparations for Crossrail
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Safety & Security
Increased funding for enforcement, especially during peak retail hours (i.e. early evenings and weekends), to crack down on illegal street trading, dumped rubbish, littering and other anti-social behaviour A refocused Retail Crime Partnership combining digital radio, store-controlled CCTV, Facewatch technology and intelligence capability Joint operations with the Metropolitan Police for dealing rapidly with retailer concerns, together with the agreement of minimum service standards In addition, ways to improve the coordination of the District’s security staff will be examined to encourage more connections between store security, enforcement officers and the Metropolitan Police.
Cleansing & Maintenance
There will be a focus on improved operational performance against existing baseline standards, taking account of principal retail hours. A rapid response capability for those issues that are often not fixed to baseline timelines will be developed in partnership with Westminster City Council We will pursue greater efficiencies through smart contracting and better connection to suppliers, to optimise return on investment There will be more enforcement manpower, subject to the success of the 2012 pilot, and an incentive scheme to encourage occupiers to use fewer waste collectors
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WELCOME & DISCOVERY Red Cap Welcome Ambassadors
The Ambassador service has been revitalised by The Welcome People. Already assisting and orientating up to 30,000 shoppers every month, we will invest further by using manned kiosks at strategic points on the main streets and other gateways. In addition, there will be a tailored support package to retailers, to ensure good communications, timely advice and relevant intelligence sharing. We will also develop improved services for shoppers, to provide added value and differentiate West End retail from elsewhere. Free Wi-Fi, personal shoppers, VIP Meet & Greet and other services are offered, either across the District or by individual retailers. Our Business Plan will make sure that current offers are well understood and promoted and also develop other ways to ensure shopping trips remain distinctive, informed and enjoyable. Areas that can deliver a clear return on investment for retailers, such as the Facewatch crime reporting system, will continue to be supported.
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Oxford Street is home to our UK flagship stores and fundamental to our future success is New West End Company. Their work in providing a cleaner and safer environment along with traffic-free shopper events delivers a trading environment that brings bottom line boosts to our business. DAVID LATHAM LARGE STORE CONTROLLER UK, PRIMARK
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Putting Liberty and London’s West End on the global shopper map has been a major triumph of New West End Company. Their London Luxury Quarter initiative fits our brand perfectly and we see a real value in supporting New West End Company moving forward. ED BURSTELL MANAGING DIRECTOR, LIBERTY LONDON
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Liberty - Rope Bowl
With the West End being one of the world’s top shopping destinations it is important to have a body such as the New West End Company to help us stay ahead of the game and competition abroad. H&M are proud to have stores on both Oxford Street and Regent Street both iconic retail shopping streets. MAGNUS OLSSON COUNTRY MANAGER, H&M UK & IRELAND
H&M - Rings
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LEADERSHIP & DEVELOPMENT Business Leadership
Our Plan’s third priority is to ensure that the District has a successful future. Current success cannot be relied on and we will help develop and deliver a renewed longer-term vision, both for the District and the wider West End. Business leadership can help create momentum, lift the level of aspiration and enable focused action plans to be developed and realised.
People Not Traffic
Progress in reducing the volumes of traffic has been slower than foreseen by our original Masterplan. It has proved challenging to significantly change a finely balanced and complex surface transport system. Our vision remains to see a significant reduction in the amount of traffic. Traffic calming measures, new technologies to reduce air pollution, reductions in speed limits (particularly for buses), pedestrianised zones, schemes to boost walking and cycling and other measures will need to be combined into a coherent plan.
Crossrail: The Game-Changer
Crossrail will dramatically increase transport capacity and offers the opportunity to take a new approach to traffic management. Working closely with Westminster City Council, Transport for London, the Mayor’s office and others, we will prioritise longer-term improvement by: Developing solutions to reduce traffic in Oxford Street and Regent Street – particularly, given their impact, buses, but also taxis, delivery vehicles and cars Pressing for the City Council, Mayor and others to test and trial new approaches to traffic management, closely involving other West End interests Developing plans to ensure that the District is fully prepared to welcome the millions of extra visitors that Crossrail will bring into the area
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New West End Company is one of TfL’s key partners as we continue to transform London’s transport infrastructure. The West End is already beginning to see the benefits of the Tube upgrade programme with additional capacity now delivered on the Jubilee and Victoria lines. But Crossrail and the wholesale re-building of Tottenham Court Road and Bond Street stations will be a game-changing moment. The extra rail capacity and improved public realm will open up many more possibilities for how transport supports a thriving West End. It is vitally important that we develop our plans together with the West End’s business community. PETER HENDY COMMISSIONER, TRANSPORT FOR LONDON
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With two flagship stores in the West End, M&S is committed to enhancing its position as a leading shopping destination – both within the UK and internationally. New West End Company plays an instrumental role in ensuring this famous part of London continues to prosper and we are fully supportive of its renewal plans and efforts to reduce traffic on Oxford Street and Regent Street. STEVE ROWE DIRECTOR OF RETAIL, M&S
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M&S - Trio Matinee Bangles
We want to see New West End Company playing a central role in helping to make sure London’s West End is ready for the future. This can only happen through close collaboration with all retailers in the sector addressing the future major challenges that the area faces. New West End Company is one of the drivers to make this happen. ANDY STREET MANAGING DIRECTOR, JOHN LEWIS
John Lewis - Haberdashery
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LEADERSHIP & DEVELOPMENT High-quality Public Spaces
There is a need to invest further in public spaces to match the significant investment by retailers in the three streets. The joint Oxford Street, Regent Street & Bond Street ‘ORB’ Action Plan provided an agreed framework to develop oasis spaces, widen pavements, remove clutter, develop the Legible London way-finding system and other measures. Funding issues have made implementation more challenging but no less important. Retailers and shoppers have indicated the following areas are of central importance: Investment to improve shopper information, guidance and orientation Improvements to the entire length of Bond Street Continued investment in Oxford Street Support for pocket plazas, larger oasis spaces and new food and beverage quarters We will facilitate the development of such schemes with implementation funded by a mix of private and public sources. There is the potential for property owners to become formal members of the Company in the next 18 months and this would further increase investment in our activities.
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Advocacy and Insight
We will continue to speak up for the District, ensuring its performance is clearly communicated and backed up by compelling insight and regular analysis of footfall and sales data. Insight reports will include the development of an international benchmark to measure the relative performance of the District globally. Ways to accurately track shopper satisfaction in real time will be developed. A membersonly facility, tracking store opening hours, will also be put in place.
West End Community
The West End is a vibrant area where many people work, visit and live, side by side. We will contribute to the well-being of the area by improving the life chances of young less advantaged Westminster residents and will also work closely with all those that have an interest in the District.
London’s West End is the country’s shop window to the world. New West End Company has an important and essential role in ensuring that the needs and the commercial interests of the area are represented and driven forward at all levels of Government. Results have been demonstrated and they continue to deliver. It is vital both property and retail businesses continue to support the company for the areas future success. ROBERT NOEL CHIEF EXECUTIVE, LAND SECURITIES GROUP PLC
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PRIORITIES OF THE RETAIL STREETS Bond Street Association has benefited remarkably by becoming part of New West End Company. I feel that it is essential as a community we work together to strengthen our appeal to the global consumer ensuring that London’s West End maintains its reputation as a leading luxury lifestyle destination. The West End is made up of many diverse parts which makes the communication process essential . The company is key in making these diversities come together. LORD BRUCE DUNDAS CHAIRMAN, BOND STREET ASSOCIATION & UK RETAIL DIRECTOR SOLANGE
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Transformed public spaces with a potential multi-million pound programme of street improvement, including higher-quality carriageways and paving, new lighting and refreshed oasis areas New Christmas Lights, street dressing, ags and a coherent look and feel for hoardings and building wraps Continued evolution of retailer-led events and destination marketing, PR, visitor guides and promotional materials Investment into the Luxury London Quarter, promoting the area to high net-worth international shoppers Value-added shopper services. An examination of valet or short-stay free parking, delivery to hotels, concierge services to improve shoppers’ reception and experience Crime and security. Bespoke activities to provide additional street security, given the type of retailers and customers
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A review of the Oxford Street brand, enhancement of digital channels, destination PR campaigns, promotions and tourism marketing to increase sales New Christmas Lights from 2013 and a new approach to trafďŹ c-free events The redevelopment of the eastern end of Oxford Street, including improvements to public spaces, a shopper information kiosk and robust planning for Crossrail The western end of Oxford Street will be given a facelift with new paving and reduced clutter Improvement to current crime prevention systems, utilising dedicated store-led CCTV, intelligence and radio system High footfall means a higher level of maintenance is required. A rapid response team will deal with outstanding highways issues in a timely way 45
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A reinvigorated TrafďŹ c-free events programme including the likely continuation of the early summer and September fashion-focussed events Working closely with Westminster City Council and TfL, a trial for summer road closures, adapting the Summer Streets concept, successfully delivered in New York City, and potentially extending this to Oxford Street subject to evaluation Continuation of the Regent Street branded Red Cap Welcome Ambassador service during core retail hours, with the potential for more permanent shopper information points and kiosks at key gateways and oasis areas Continuation of gum removal services, with an additional investment in, and focus on, deep cleaning and litter removal prior to opening on Saturday and Sunday mornings Measures to encourage greater levels of visible police presence will be developed in partnership with the relevant authorities
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GOVERNANCE The West End’s popularity is greater than ever but we need to work together to maintain its position as one of the world’s best shopping destinations. We support New West End Company’s aim to promote the area’s retail attractions, improve the street environment and champion the concerns of local stakeholders. WILL BAX LOCATION DIRECTOR MAYFAIR, GROSVENOR
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GOVERNANCE District Map
The New West End Company BID area will focus on the three principal retail streets of Bond Street, Oxford Street and Regent Street together with their key areas of hinterland and connecting streets. The BID levy will only apply to retail, food and beverage and leisure (including hotels). All other uses, including the office and commercial sector, will be excluded. The geography and sector base reflects the retail and leisure focus of the District and its role as an economic driver for London and the UK. The following streets will be included, either in whole or in part: Existing Streets:
New Streets:
Bond Street
Air Street (in part)
Brown Hart Gardens
Argyll Street
Duke Street (in part)
Barrett Street
Gees Court
Bird Street
Heddon Street
Brewer Street (in part)
Lancashire Court
Brook Street (in part)
Langham Place
Glasshouse Street (in part)
Market Place
Great Marlborough Street (in part)
North Audley Street
Sherwood Street
Oxford Street
Swallow Street
Portland Place (in part) Regent Street Savile Row South Molton Street St. Christopher’s Place 50
LANGHAM PLACE
PORTLAND PLACE MARKET PLACE ST. CHRISTOPHER’S PLACE OXFORD STREET BARRETT STREET
GEES COURT
BIRD STREET ARGYLL STREET SOUTH MOLTON STREET GREAT MARLBOROUGH STREET DUKE STREET REGENT STREET BROOK STREET HEDDON STREET NORTH AUDLEY STREET
LANCASHIRE COURT
BREWER STREET
BROWN HART GARDENS
SHERWOOD STREET
BOND STREET
GLASSHOUSE STREET
N
AIR STREET SAVILE ROW SWALLOW STREET
Reproduced from Ordnance Survey mapping with the sanction of Her Majesty’s Stationery Office, Crown Copyright. City of Westminster LA100019597.
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GOVERNANCE Meeting Business Criteria
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National criteria has been adopted by individual businesses and representative organisations such as British BIDS and the British Retail Consortium for evaluating the performance of Business Improvement Districts. We have sought to summarise these criteria and confirm that we fulfil each requirement set down. 1.
Increasing footfall and sales and reducing business costs are our core objectives
2.
New West End Company activities are wholly additional to those provided by the statutory authorities and other agencies
3.
£5m matched funding will be invested by the property sector and other commercial partners
4.
Matched funding from public agencies will be sought for public realm projects
5.
Our Crime Intelligence Partnership is a core programme
6.
New West End Company is wholly business-led
7.
Retail investment (the BID levy) is set at 1% of rateable value
8.
Our Business Plan illustrates how the BID intends to achieve its objectives and deliver a return on investment and sets out a clear geography based upon the core retail offer in London’s West End
New West End Company has British BIDs accreditation and will seek to renew this in 2013 ensuring best practice management and control systems.
Measuring Performance
The Board’s Policy and Performance Group will regularly evaluate deliverables and outcomes from New West End Company and our three Street Association partners. Consistent measures will be applied across the main disciplines including:
Attract & Promote
Event footfall and incremental sales Opportunities to see and hear campaign messages Additional commercial income Contra media support and coverage via value and reach Website trafďŹ c, social media targets and database capture Promotion and offer uptakes Hotel promotions and tourism packages Visitor collateral distribution reach and business feedback Consumer feedback Perception analysis and brand awareness Number of businesses involved Overall Return on Investment
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GOVERNANCE Welcome & Discovery
Baseline Agreements with Westminster City Council Number of visitors assisted Customer service feedback: shoppers and businesses Number of ‘adopt a shop’ businesses engaged Level of enforcement achieved against targets Reduction in crime Offenders prosecuted Uptake of Crime Intelligence Partnership Environmental issues reported and response time Improved compliance with regards to commercial waste Improved response time on road works and utility maintenance Gum removal
Leadership & Development
Member feedback and satisfaction surveys Regular and accessible retail sales and footfall reports Timely and high-quality market insight reports Leveraging additional property and public sector funding Influencing policy to benefit businesses Reducing traffic and creating more quality public spaces Government and stakeholder perception audits Media and investor profile and coverage An engaged stakeholder community through event attendance and feedback Robust issues management and business continuity plans Reputation risk register reviewed quarterly Annual audit of accounts and governance by independent company
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Company Constitution
The BID Company is a business-led, not for profit organisation formed to improve the West End’s retail heartland (See District map on page 51) It will operate as a company limited by guarantee, with members’ liability limited to £1 and have four categories of membership: 1. BID levy payers 2. Property owners 3. Associate members 4. Voluntary retail members 1.
BID levy payers, i.e. commercial occupiers (companies) liable to pay the Business Improvement District levy, will be admitted to membership in accordance with the New West End Company’s Articles of Association and shall be members of the Company.
2.
Property owners within the New West End Company’s District who contribute collectively with other property owners will be admitted to membership in accordance with New West End Company’s Articles of Association and shall be members of the Company.
3.
Associate members, i.e. those who make a voluntary contribution of a fixed membership sum, will not be admitted as members of the Company. They will, however, be entitled to attend the Company’s AGM and EGM, (but not vote) and to receive the Company’s Annual Report.
4.
Voluntary retail members, i.e. those retailers with an RV lower than the £250k threshold, will be invited to join on the basis of a 1% voluntary contribution. This will be particularly relevant for some of the smaller BID streets.
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GOVERNANCE We’re now half-way through our 21st Century £1 billion regeneration, which is seeing Regent Street transformed. What is good for the wider West End is good for Regent Street. This is where the New West End Company’s role is crucial, and where they have really made a difference for the better. By bringing together the wider retail community together with property owners, they’ve given us all a stronger voice and made us more effective on the ground. This essential good work means that the New West End Company best positions the public’s perception of the West End, thus driving footfall as well as keeping our streets safe, clean and welcoming. New West End Company is a force for good for the whole of the West End community. DAVID SHAW HEAD OF REGENT STREET PORTFOLIO, THE CROWN ESTATE
New West End Company has a vision for the West End. With hard work and planning it has changed perceptions whilst still maintaining the area’s distinctive character. It has released some of the area’s potential but there is still work to be done. JOHN BURNS CEO, DERWENT LONDON PLC
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Property Partners
Since the inception of New West End Company, the District’s property sector partners have been very supportive through significant voluntary contributions. Government legislation is currently being advanced to facilitate property owner BIDs. This should be finalised in 2013/14 and takes into consideration consultation with existing voluntary property owners who currently contribute over £700,000 of matched funding annually to New West End Company.
Voluntary Members
Associates
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GOVERNANCE Company Structure
The Strategic Board, which will provide leadership and guidance, will consist of a minimum of nine members, elected from their constituency based upon the following criteria: Retailers – at least five members Street representation will be three to five members with a rateable value above an agreed threshold (Bond Street RV> £700,000, Regent Street RV> £1m, Oxford Street RV> £4m) Property owners – at least three members Representation will be based upon three to five members with a rateable value above an agreed threshold (£10m) or investment of £110,000 or above Chairmen of the three principal Street Associations Bond Street, Oxford Street and Regent Street (ex-offico role with voting rights) The Chairman of the Strategic Board will be elected by the Strategic Board (the main Company Board). The Chairman does not have to be either a BID paying retailer or a property owner. The Strategic Board will have two sub-committees: Finance & General Purposes Committee Policy & Performance Group The Policy & Performance Group may co-opt retail or property members from any of the other BID streets for a minimum term of one year. The Policy & Performance Group will evaluate delivery and measure overall performance of New West End Company and the Street Associations. The successful federal model will be further developed with the support of the three principal Street Associations managing the street-specific budgets in line with overall Business Plan objectives.
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An Operating Agreement will set out and govern the relationship between the three Street Association Councils and the New West End Company. The relationship between the organisations is shown below. The Oxford Street Association’s work programme will be delivered by New West End Company. At least 50% of the members of the Street Association Councils will be BID paying members.
New West End Company Strategic Board
Finance & General Purposes Committee
Policy & Performance Group
Other BID Streets
Bond Street Association Council
Oxford Street Association Council
Regent Street Association Council
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GOVERNANCE Finance & Operating Agreements Commercial and Other Income
Commercial and sponsorship income will be sought against marketing and promotional projects such as Christmas Lighting. Other income opportunities will be identified throughout the life of the BID.
Financial Management
The BID company will work to the approved Business Plan and monitor expenditure and cashflow according to agreed company governance. BID renewal costs will be apportioned across the streets. The accounts will show actual expenditure against budget and a variance analysis.
BID Service (Baseline) Agreements
The BID provides added value over and above those services currently delivered by public service providers. In order to ensure that the BID services do represent additionality’, a series of baseline agreements will be put in place between Westminster City Council and the BID company. These will include agreements on: Cleansing, Street Environment, Highways & Transportation, and Enforcement.
BID Operating Agreement
To guarantee a professional and transparent service is provided by both parties, a formal Operating Agreement will be signed between the BID Company and Westminster City Council. The main elements of the operating agreement will be: Administration of the BID revenue account by the local authority (this is a ring-fenced account that the local authority will use to collect the BID levy and pass the funds over to New West End Company) Collection of the BID levy, including any enforcement procedures required Accounting procedures and monitoring For full details of the baseline or operating agreements visit www.newwestend.com/renew
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New West End Company is to be congratulated. They have done a fantastic job over the past few years promoting London’s West End as the heart of our city - the world’s fashion capital. CAROLINE RUSH CHIEF EXECUTIVE, BRITISH FASHION COUNCIL
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USING YOUR VOTE Voting Procedure
This Business Plan presents a collective view of issues that businesses have prioritised for our area. Over 97% of the District’s eligible businesses were interviewed while drawing up this Business Plan and we will consult further in the autumn. For a full report on the consultation that took place from November 2011 to September 2012, please go to www.newwestend.com/renew From 15 November 2012 you will be given the opportunity to vote on this Business Plan and to renew New West End Company’s mandate for a period of five years. To ensure neutrality, the BID ballot will be administered by the City of Westminster Returning Officer and his electoral services staff. It will be arranged in line with the rules set out in the BID Regulations (2004) as approved by Parliament. All eligible businesses, as set out in the database of BID levy payers, will be entitled to one vote per hereditament. Some businesses will occupy more than one hereditament within the area, and will therefore have more than one vote. The full list of eligible businesses can be found at www.newwestend.com/renew The ballot will need to satisfy two tests: A majority in number of those voting A majority in proportion of rateable value of those voting The BID levy can only come into effect if these two tests are met. The BID levy is then applicable to all eligible businesses. Subject to the above arrangements, the BID will commence on 1 April 2013.
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Key Dates
Voter Nomination Papers will be sent to you by post on 1 October 2012 Your Notice of Ballot will be sent to you by post on 30 October 2012 Your ballot paper will be sent to you by post on 13 November 2012 You will need to cast and return your postal vote by 5pm on 13 December 2012 The result of the vote will be announced on 14 December 2012
Identifying the Eligible Voter
Westminster City Council will start with the ratings list provided by the Council’s rating department to identify eligible voters. A letter will be sent to all deďŹ ned ratepayers to request the nomination of the eligible voter – this may be the name that features on the rating list or an alternative representative from the company.
Proxy Voting
A proxy voting system will be available in the event of eligible voters being unavailable at the time of the ballot. Proxy voting forms will be available from Westminster City Council and details of the procedure will be included in the correspondence related to the notice of ballot. Full details of the ballot arrangements are available on our website: www.newwestend.com/renew
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USING YOUR VOTE BID Levy Rules
The income to be derived through the BID levy will be based upon a set of detailed levy rules as follows: 1.
The third term of the BID will be for a period of five years from 1 April 2013 to 31 March 2018
2.
The BID levy will be applied to rated properties in the BID District with a rateable value of £250,000 or more
3.
The BID levy will only apply to retail, food and beverage and leisure (including hotels)
4.
The levy will be a fixed rate of 1% of rateable value as at 1 April 2013 using the 2010 list for all eligible levy payers apart from hotels
5.
The levy rate for all hotels will be a fixed rate of 0.6% of rateable value as at 1 April 2013 using the 2010 list
6.
New hereditaments will be charged based on the rateable value at the point of occupation
7.
Charitable organisations in receipt of mandatory charitable relief from business rates will receive 90% allowance
8.
Empty properties will be liable for the BID levy via the ratepayer with no void period
9.
The BID levy will assume an annual growth rate for inflation of 3% to be applied on 1 April each year (i.e year two would be 1.03%)
10. There will be no VAT charged on the BID levy 11. The BID levy will not be increased other than as specified in the levy rules 12. The BID levy rules cannot be altered without an alteration ballot
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Our clients require stunning streetscapes, unsurpassed service and a renowned collection of the world’s finest and most luxurious brands. New West End Company brings this all together. I encourage the fashion houses of Bond Street to continue to support the company. Their renewal is critical to our future success. PADDY BYNG, MANAGING DIRECTOR, ASPREY
Asprey - The Belgravia Darcy Handbag
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BUDGET New West End Company has been instrumental in not only improving the look and feel of the West End but also in championing the needs of retailers and hoteliers with relevant governing bodies. The Langham, London is looking forward to working with the New West End Company to further enhance the streets around us and also the environment in which we do business. KATIE BENSON REGIONAL VICE PRESIDENT EUROPE & NORTH AMERICA, MANAGING DIRECTOR, THE LANGHAM, LONDON
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5 YEAR INCOME PROJECTION The BID company will be based upon projected income over a five-year period and will be made up from the following annual income sources as follows: £000’s
BID Levy
Year to March 2014
Year to March 2015
Year to March 2016
Year to March 2017
Year to March 2018
3,410
3,512
3,618
3,726
3,838
Property Owners
710
710
710
710
710
Associate Members
100
100
100
100
100
Commercial Income
245
248
251
254
257
Sponsorship Income
250
250
250
250
250
8
8
9
10
10
4,723
4,828
4,938
5,050
5,165
Interest TOTAL INCOME
Note: Property owner income is confirmed for 2013/14 and assumed for future years. Sponsorship income based on one large sponsored event per annum but is likely to be greater.
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Jaeger believes the West End is a unique retail area that deserves investment and a strategic focus managed locally. New West End Company working in tandem with the Regent Street Association has supported our business through their events and campaigns and helped improve the environment for retailers. We support the renewal of New West End Company. TERRY SHAY REGIONAL MANAGER, JAEGER
Jaeger - London Eye Cufinks
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PROFIT & LOSS ACCOUNT 2013/14 2013/14 £000’s
INCOME INCOME BID Levy
72%
Associate Members
2%
Commercial/Other Income
5%
Sponsorship
6%
Voluntary Members
Levy Collection Insight Leadership & Development
Voluntary Members
710
Associate Members
100
Sponsorship
250
Commercial/Other Income
245
Interest
8
TOTAL
4,723
EXPENDITURE
32%
1% 3% 4%
Welcome & Discovery
1,431
Attract & Promote
1,610
Insight
140
Christmas Lights
500
Leadership & Development
200
Management/Office Costs
636
Levy Collection TOTAL
Christmas LIghts
11%
Management/Office Costs
14%
Surplus/Deficit
Attract & Promote
35%
Tax & Depreciation Contingency 5% of BID Levy Net surplus/Deficit
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3,410
15%
EXPENDITURE Welcome & Discovery
BID Levy
28 4,545
178 6 170 2
New West End Company plays an intrinsic part in driving footfall to London’s West End, by proactively raising awareness both in the UK and overseas. Through a cohesive and comprehensive marketing strategy, the company is a key partner in supporting House of Fraser’s Oxford Street store. JOHN KING CEO, HOUSE OF FRASER
House of Fraser - Blouse
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As the largest retailer in Bond Street I have supported New West End Company since its inception. It has grown and developed to the point where it plays a vital role in the continuing future of the biggest shopping centre in the world and working with the Mayor’s Office, Westminster City Council and other interested parties is driving the regeneration of the area. The management of the company is first class and I will certainly be supporting them in their application for a third term. MARK FENWICK FENWICK
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Fenwick - Do-Mo Purse
THIS IS OUR WEST END. TOGETHER WE CAN CONTINUE TO SHAPE THE FUTURE, OFFERING A REAL RETURN TO YOU 73