House of Fraser is set to close its flagship store on London's Oxford Street in January after being served notice by its landlord, the Frasers Group announced. The closure marks another blow to the UK's premier high street as retail continues to decline in the area.
The building's owners, believed to be the German Conle family, recently secured planning permission to redevelop the site into six floors of offices with ground-floor retail, a basement pool and gym, and a rooftop restaurant. Work has reportedly begun on the two-year project.
A Frasers Group spokesperson expressed regret over the closure, noting that the company had kept the store trading for three years longer than initially proposed by the previous owner since acquiring House of Fraser in 2018. The store may return to a smaller part of the building after redevelopment.
The Oxford Street closure, along with another in Swindon scheduled for December, will reduce House of Fraser's store count from 43 to 41. The chain had 59 stores when it was bought out of administration by Mike Ashley's Frasers Group in 2018.
Frasers Group warned that further store closures are inevitable without a government review of business rates, which it described as 'archaic' and 'astonishingly outdated'. The company continues to invest in the British high street but faces challenges from online shopping and specialist rivals.
The closure follows a trend of retailers leaving Oxford Street, with Marks & Spencer and John Lewis seeking to convert parts of their outlets into offices. Jace Tyrrell of New West End Company said the transformation is part of a necessary reinvention, with offices providing customers for retailers and leisure venues.
