Oxford Street's US Candy Shops: A £7.9m Tax Evasion Problem
Oxford Street's US Candy Shops: A £7.9m Tax Evasion Problem

Oxford Street, one of the UK's most famous shopping destinations, is now home to at least 30 US-style candy stores, many of which are under investigation for tax evasion and selling counterfeit goods. Westminster City Council is currently pursuing £7.9 million in unpaid business rates from 30 such shops, with the true ownership often hidden behind a web of shell companies.

The proliferation of these stores is linked to the decline of traditional retail due to online shopping and the pandemic, which left many units empty. Freeholders, facing business rates on vacant properties, have let them to intermediaries who then sublet to candy and souvenir shops. This practice shifts the rates liability to the occupier, but councils struggle to identify who that is, as staff often claim ignorance and point to shell company licences.

Customers are also being ripped off, with unpriced goods leading to hefty bills—such as £13 for a bag of pick'n'mix. In the last six months, council officers have seized around £575,000 worth of suspected fake or unsafe items from these shops, including over 2,000 counterfeit Willy Wonka bars sold for up to £10 each, despite containing cheap supermarket chocolate worth about 40p.

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Other seized items include 3,000 vapes with excessive nicotine levels, fake designer phone covers, hoodies, and bogus Apple AirPods. Westminster Council is pressuring landowners to take responsibility and is offering pop-up scheme discounts to encourage legitimate startups to occupy empty units, aiming to curb the rise of these problematic stores.

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