New West End Company | Morley House | 320 Regent Street | London W1B 3BET 020 7462 0680 | F 020 7462 0688 | E info@newwestend.com www.newwestend.com Follow us on: twitter.com/newwestend

FiNaNCiaL MaNagEMENt 2014/15

New West End Company was established

over a decade ago as Europe’s largest retail

led Business Improvement District (BiD).

in March 2005 New West End Company was

voted by businesses as a formal Business

Improvement District (BiD): a statutory

body for Bond Street, Oxford Street and

Regent Street and over 20 neighbouring

streets. this mandate was renewed for a

further 5 years in December 2007 and

again in December 2012.

the company is dedicated to driving

forward London’s West End as the world’s

top shopping destination. With a £25m

mandate until 2018, it is supported and

run by the major retailers and property

owners in the UK’s retail heartland.

Objectives

Higher footfall & sales

Safer, cleaner and more welcoming streets

A strong voice for business

Leveraging investment

Improving public spaces

New West End Company works in partnership with the Mayor of London, Westminster City Council, Transport for London, the Metropolitan Police and other partners and agencies to enhance the economic prosperity of the West End.

the BiD is governed by a Strategic Board consisting of retailers and property owners in the district and representation from other bodies, including Westminster City Council, as observers.

New West End Company ensures the ongoing commercial success of the area by promoting the district, delivering street management services and funding public realm projects to improve the shopping environment. it is a leading partner in the biggest regeneration programme of London’s West End in its history.

Results 2013/14New West End Company’s BID levy for 2013/14, together with matched voluntary contributions from the property sector, was invested into delivering services to drive business performance in the West End.

Key results included:-

• The Oxford Street brand was launched at Centre Point in July and has provided a contemporary platform on which to position the world’s greatest high street.

• A spring campaign ‘The Great Oxford Street giveaway’ to drive footfall and sales of the new collections saw sales increases of +10% in over 50% of participating stores.

• A focus on social media channels saw a 295% increase in followers on Twitter and over a million visitors to the Oxford Street website, an increase of over 35% year on year.

• The British Fashion Council and Oxford Street launched a new partnership in September coinciding with London Fashion Week which dressed the street with fashion flags, and held promotions and events for fashion savvy shoppers.

• Christmas 2013 saw Oxford Street transformed with a brand new design of Christmas Lights; the switch-on event hosted by Selfridges on 12 November generated 118 pieces of media worth over £3million, an increase of over 34% on the year before.

• Insights on the Christmas trading period were picked up by media across the world, with interviews on Chinese, Russian, Indian and US television. There were more than 160 pieces of coverage worth an estimated £4.5m.

• The successful Christmas Cheer campaign on Oxford Street increased its twitter following by +94%.

• New West End Company supported Regent Street Association who produced a number of successful traffic free events, with themes including Summer Streets, The World on Regent Street, the Regent Street Motor Show and a new format Christmas Lights show.

• The Regent Street gift card was promoted with 630 gift cards sold up to December.

• London Luxury Quarter won the Hurun Best of the Best Award for “Best UK Luxury Shopping Destination”.

• A mission to China coinciding with the Mayor’s visit to position London Luxury Quarter as the luxury destination for high net-worth individuals and to launch the London Luxury Quarter Experiences. This helped to gain momentum for London Luxury Quarter in China with coverage by business and lifestyle media as well as in the UK totalling over 300 print and on-line articles. Other successful results include building close relationships with on territory marketing agencies, linking to the GREAT campaign and carving out opportunities for LLQ and Bond Street to cooperate with Hurun (China Rich List), British Polo Day and Vogue.

Priorities 2014/5• Increase footfall and drive sales

with promotions.

• Build the brand by executing major events in Regent Street, invest in reaching shoppers by digital channels for Oxford Street and agree the improvement Masterplan for Bond Street.

• Continue to offer a warm welcome from the Welcome Ambassadors and keep the streets clean, well managed and safe.

• Working in partnership with Heart of London Business Alliance, Shaftesbury and The Crown Estate, the Time Out Dining Guide was distributed in 200,000 copies of the magazine.

• On Bond Street planters were placed outside retailers to improve the streetscape. A successful funding bid will provide £72,500 matched funding for a commercial vehicle reduction scheme on Bond Street and a traffic study was begun to underpin the development of the new Masterplan. The Beadles of Bond Street were established to raise the quality of the visitor welcome and report environmental issues. A dedicated cleansing team was put in place to deep clean the street.

• All crime reported across the BID area was down 21% on last year whilst reported retail crime is down 20% on the previous year. The New West End Crime Intelligence Partnership has supported the Safer West End Partnership with improved information sharing capability via a centralised crime database.

• Working smarter with all key partners the New West End Company now feeds information directly into the relevant operational task group to tackle persistent repeat offences, street nuisance and anti-social behaviour.

• The digital radio network continues to provide quick time response to crime and other related issues across the BID district.

• Our Welcome Ambassadors provide a consistent, visible and accessible presence on the street and provide one to one direction and orientation to over 500,000 shoppers and visitors annually on Oxford Street, Regent Street and Bond Street.

• Welcome Ambassadors reported over 2000 issues to Westminster City Council’s emergency call centre with 96% of these being fixed in time against our baseline service agreement.

• Our Clean Team services provided additional street cleansing 7 days a week over a split shift pattern covering 24 hours a day. High intensity cleansing like gum removal and deep flushing now operate outside of key trading times supported by a day time janitorial and litter picking service which guarantees a 30 minute rapid response time to any cleansing request with in the BID area. Our team deep cleaned some 554,000 sq ft of footway - the area of about 7 football pitches.

• Recruit West End an initiative in partnership with The Crown Estate and Westminster City Council has placed 120 young unemployed Westminster residents into retail and hospitality employment.

• The UK China Visa Alliance - New West End Company is a founder member of the UKCVA which continues to press and work closely with government to make it easier for Chinese visitors to obtain visit visas to the UK.

Focus of activity 2014/15

Bond Street

• Agreement of a masterplan that by 2017 will transform the street. A multi-million pound programme of street improvements, including improved balance between pedestrians and vehicles, new finishes to footways and carriageways, new lighting, new landscaping, new street furniture and new oases spaces.

• Enhanced look and feel for the street, including new Christmas Lights in 2014, and opportunities to provide accent lighting at other key times of the year, more landscaping, and improved street dressing.

• Enhanced customer services including the Beadles of Bond Street to welcome customers, and easier parking for VIP customers.

• Enhanced street management including improved cleaning regimes and a crime prevention programme.

• Investment into the London Luxury Quarter to promote the area to High Net Worth visitors.

Regent Street

• A renewed focus on traffic free days including new events.

• Development and delivery of a new Christmas lighting scheme.

• Continued marketing of Regent Street through the giftcard and other promotions.

• Continued development of the Welcome Ambassador service, cleansing teams and specialist support targeting issues like pedicabs and anti-social behaviour.

London Luxury Quarter

• Further development of strategic partnerships for LLQ working with commercial partners such as British Airways.

• Relaunch the LLQ website and develop other marketing material including the experiences package and social media channels.

• Hold Marketing Suites in cooperation with BA in Chengdu, Shanghai and Beijing.

• Ensure that the reputation of the Quarter is well understood to London and UK stakeholders through events and compelling insight.

• Establish an LLQ Marketing group drawing on expertise from the rich variety of businesses within the quarter.

Oxford Street

• Build upon the Oxford Street brand with events, marketing and PR supported by social media.

• Continue to improve the new Christmas Lights scheme by ensuring greater coverage in the street.

• Work with strategic partners such as Westminster City Council and Transport for London to plan for the increase in number of visitors after the opening of Crossrail.

• Help encourage investment into the East End of Oxford Street by supporting re-development and promoting the area to new retailers.

• Focus on the different audiences for Oxford Street including office workers, the domestic tourist and the overseas visitors by providing relevant events and promotions.

• Strengthen and continue the partnership with the British Fashion Council to help achieve the collective vision of bringing London Fashion Week to the high street.

• Aim to deliver an even better welcome presence on the streets through knowledgeable dedicated Welcome Ambassadors, use of static on-street information pods and better linkage to our retailers.

• Keeping Oxford Street one of the safest and cleanest retail streets with a sense of well being for the benefit of all businesses, visitors and shoppers.

Leadership & Development

• Crossrail - Working closely with partners at TfL and WCC, identify short and longer term measures to ensure the impact of Crossrail, and the increased numbers of visitors the line will bring, is of benefit to the District particularly in terms of higher quality public realm and reducing the space for all forms of traffic in favour of shoppers.

• Encourage Government to further deregulate Sunday trading hours so that the West End is able to welcome international visitors at all the times they would like to shop.

• Examine new funding streams to assist the mission of the company particularly the development of a formal Property Owners BID to run alongside the arrangements in place for retailers.

Financial Management 2013/14 (Forecast) Financial Management 2014/15 (Budget)

Income 2013/14 (Forecast) Income 2014/15 (Budget) Expenditure 2013/14 (Forecast) Expenditure 2014/15 (Budget) BID levy Other TotalWelcome & Discovery

Welcome Ambassadors 545,469 89,031 634,500Clean Team 390,720 76,043 466,763Ops Management & Policing 106,000 12,000 118,000Enforcement/Digital Radios 21,735 21,735Welcome & Orientation Initiatives 32,000 32,000

Attract & Promote Sponsored Traffic-Free Days/LFW 190,000 190,000Communications 60,000 100,000 160,000Street Events & Promotions 650,400 650,400West End Marketing 115,000 85,000 200,000Luxury Marketing 200,000 76,000 276,000Research & Insight 102,000 42,520 144,520Partnership Marketing 69,500 69,500Sponsorship Retainer 60,000 60,000Digital, Collateral, Maps & Other 171,000 92,640 263,640

Christmas Lights 518,000 13,750 531,750

Leadership & Development Public Realm & Inward Investment 137,900 55,250 193,150Visa’s/Sunday Trading 15,000 15,000Property Ballot 20,000 20,000Community/Employment 23,000 3,000 26,000

Office, Staffing and BID Running Staff 472,883 472,883Office 163,395 163,395Street Development/Admin 90,000 90,000BID Levy Collection 27,120 27,120Contingency-2% of Levy 69,500 69,500Statutory Requirements 28,000 28,000Tax, Depreciation and Bad Debts 20,000 5,000 25,000

Total Expenditure 3,549,844 1,399,012 4,948,856Surplus/deficit -74,844 -97,812 -172,656Brought forward from 12/13 304,049 59,211 363,260Net position Mar 14 229,205 -38,601 190,604

BID levy Other TotalWelcome & Discovery

Welcome Ambassadors 577,200 99,000 676,200Clean Team 353,667 77,333 431,000Crime Intelligence & Policing 110,800 20,000 130,800Enforcement/ Digital Radios 101,000 5,000 106,000Welcome & Orientation Initiatives 25,000 5,000 30,000

Attract & Promote Traffic-Free VIP Days 60,000 180,000 240,000Communications 70,000 40,000 110,000Street Events & Campaigns 474,000 474,000West End Marketing 115,000 85,000 200,000London Luxury 150,000 70,000 220,000Bond & Regent St PR and Marketing 366,000 366,000Research & Insight 104,212 38,370 142,582Partnership Marketing 69,500 69,500Sponsorship Retainer 60,000 60,000Digital, Collateral & Other 138,000 73,000 211,000

Christmas Lights & (sponsored) Gateways 580,000 6,000 586,000

Leadership & Development Public Realm/Visitor Welcome 150,000 30,000 180,000Property Ballot 50,000 10,000 60,000Other 23,000 43,000 66,000

Office, Staffing and BID RunningStaff 452,131 452,131Office 170,000 170,000Street Specific Cost 80,000 80,000BID Levy Collection 27,660 27,660Contingency-1.5% of Levy 53,640 53,640Statutory Requirements 26,000 26,000Tax, Depreciation and Bad Debts 24,000 5,000 29,000

Total Expenditure 3,693,179 1,504,334 5,197,513Surplus/deficit -117,179 -23,834 -141,013Brought forward from 13/14 229,205 -38,601 190,604Net position Mar 15 112,026 -62,435 49,591

BID levy Other TotalBID Levy 3,475,000 3,475,000Property Sector Voluntary 848,000 848,000Sponsorship Income 15,200 15,200Commercial/Partnership/Other 432,000 432,000Interest 6,000 6,000Total Income 3,475,000 1,301,200 4,776,200

BID levy Other TotalBID Levy 3,576,000 3,576,000Property Sector Voluntary 840,000 840,000Sponsorship Income 200,000 200,000Commercial/Other 434,500 434,500Interest 6,000 6,000Total Income 3,576,000 1,480,500 5,056,500

* Estimate based on billing to Jan 2014 ** No major sponsorship income in 13/14

2013/14

Attract and Promote 38%Welcome & Discovery 25%Management/Office 15%Christmas Lights 11%Leadership & Development 5%Research & Insight 3%Levy Collection, Statutory, Contingency 3%

2014/15

Attract and Promote 37%Welcome & Discovery 26%Management/Office 14%Christmas Lights 11%Leadership & Development 6%Research & Insight 3%Levy Collection, Statutory, Contingency 3%

2014/15

2013/14 2014/15

2013/14

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