Shopfronts on Sydney’s Oxford Street struggling to stay in business after years of turmoil

Business owners along one of Sydney’s most famous streets have been left enduring “years of misery and despair”, being forced to close their doors or relocate.

Many shopfronts on Sydney’s Oxford Street have been shuttered and covered in graffiti with their doorsteps marked by litter and rough sleepers.

Retail and bars that remain on the iconic strip are facing reduced trade due to a dramatic drop in foot traffic, blaming constant construction and the cost of living crisis alongside the impact of lockout laws and the pandemic.

Ken Holmes, owner of underwear and swimwear store Aussie Boys, said that his store is trading “probably down 40 to 45 per cent on what we normally do.

“We have some days where we do nil because there’s just no traffic,” he said.

“The problem is nobody’s coming here because everyone’s saying ‘don’t go to Oxford Street, there’s nothing there’.

“We’re trying to turn that around a bit, but it seems to be stuck in people’s minds that there’s nothing here so they don’t come here.”

Mr Holmes’s store has operated on the street for over 40 years and is currently flanked by construction on multiple sides.

The area in front of Aussie Boys is blocked off by barriers and fences for Clover Moore’s cycleway project on Oxford Street.

The cycleway project has previously been the subject of a formal complaint with the Australian Human Rights Commission, after some older residents complained it posed a safety risk to pedestrians accessing bus stops.

A City of Sydney spokesperson said that despite swathes of construction taking over the street, they are encouraging residents to patronise the area.

“The City of Sydney continues to support local businesses with marketing across a range of online and outdoor channels encouraging residents and visitors to visit the strip during the improvement works.”

Beside Mr Holmes’s store is further construction work, the start of three blocks on the north side of the street covered in hoarding for the major development Oxford & Foley.

The $200m multi-block project aims to create a parallel street behind Oxford Street in a Melbourne-style laneway that offers outdoor dining and entertainment.

Investment firm AsheMorgan signed 99-year leases on the council-owned properties in 2019 with developer TOGA Group, with the precinct originally set to open in 2023.

The timeline on the project has since spiralled, with the developers currently planning for a staggered opening of the three buildings from July to the end of 2025.

A TOGA spokesperson said they have “worked diligently to minimise disruptions and communicate regularly with neighbours and tenants, ensuring that the final development reflects the community’s passion for this iconic precinct.”

This extensive construction has left local businesses struggling.

Award-winning late night bar and restaurant Big Poppa’s is located in the centre of the development, and has been driven out of business by the extended disruption to their trade.

In a statement, the team behind the restaurant said “as you would have noticed, for the past 21 months the block we live in has been undergoing redevelopment.”

“Unfortunately, due to delays, the timeline has blown out and the impact on our business has been compounded … We are hoping that the construction is completed as quickly as possible and we can reopen our doors with some exciting new neighbours!”

Mr Holmes is less optimistic about the wait – claiming he has endured “for years of misery and despair” in his shop.

Some venues on the street have reduced their hours and days of trade as a result of dwindling patronage.

Beloved Sydney bar Cafe Freda’s announced on Friday their doors would be shuttering in early 2025.

The popular Taylor Square spot was launched in 2020, with the owners not knowing “how long we would be at this iconic location.”

“Cafe Freda’s was a love letter to Oxford Street, once the epicentre of Sydney night-life,” co-owner David Abram said in a statement.

“It had been ravaged by the devastating effects of the lock out laws, and more recently the pandemic.”

The iconic venue used to be located in Chippendale, relocating to Oxford St after the end of their ten-year lease. Their new location is now closing due to the redevelopment of their building.

“A lot of younger people missed out on these golden years, but for myself in the early noughties it is where I came of age,” Mr Abram said. “Where I fell in love with night-life, and where I first imagined having my own bar.”

The site is set to be redeveloped into a $14.6m boutique hotel, with a development application currently under consideration.

David and his partner Carla Uriarte plan to reopen Freda’s in another location to be announced.

With ongoing development, business owners and patrons of the street hold fears for what the future holds for the diverse character of the area.

An Oxford Street business owner who has been on the street for over a decade said that while the idea of rejuvenating the area was “appealing as hell,” the extensive construction delays meant that there was no reason for people to patronise the area.

“On this [north] side, we are disadvantaged because three city blocks are vacant. There’s nothing there,” he said.

“When you’re paying your rent here you’re not getting a lot for it in terms of foot traffic.”

“The businesses that are opening, kebab shops and tobacconists, they’re not bringing culture to an area that’s meant to be an arts and entertainment precinct.”

While Big Poppa’s and Darlinghurst icon The Bookshop are set to join the Oxford & Foley precinct, a large portion of leaseholders who have currently signed on are chain stores, including:

• Sydney coffee roasters Mecca
• Aussie bag retailer Crumpler
• Fast food chain Fishbowl
• Acai brand Oakberry
• Artisanal gelato chain Mapo

The team behind Lune Croissanterie planned to set up shop in the area, but had to stake a claim elsewhere due to the spiralling construction timeline.

Business owners in surrounding shops to Oxford & Foley expressed fear that after waiting out the pains of construction, they will be pushed out by rising rents when the project eventually opens.

A TOGA spokesperson said respecting “the area’s rich heritage and vibrant community” is integral to their project.

“We are collaborating with LGBTQI+ artists to develop public artworks for Foley Street and encouraging our tenants to join the City of Sydney’s Pride Business Charter to honour and support the community.”

The City of Sydney has also expressed a desire to maintain the character of the area, a spokesperson saying the street “has an important place in the city’s historical, social and cultural fabric”.

“Our long-term vision is for a greener Oxford Street with slowed traffic, improved pedestrian activity and cycling, and more and better public spaces.

“We want the strip to be a celebration of LGBTIQA+ culture and community and a destination and workplace for culture and creatives, with more businesses and local services in the street’s heritage buildings.”

Mr Holmes is unsure whether Aussie Boys will live to see this long-term vision, saying with 12 months left on his lease, all of the disruption “probably killed us”.

“Do I pack up and go, or wait and see if it’s going to be fantastic? There’s too many unknowns.”