London tube bosses are to embark on a major overhaul of stations to compete with the commercial success of shopping at railway stations and airports. New convenience stores, coffee shops and virtual supermarkets at tube stations will be part of a retail revolution designed to take advantage of the 24 million daily Underground journeys.
Transport for London (TfL) has developed a commercial strategy designed to increase its revenues by making the most of prime retail space which has become available since the introduction of the Oyster card.
The retail overhaul will begin with Embankment, Piccadilly Circus, Oxford Circus, Baker Street, Old Street, Vauxhall, South Kensington and Harrow-on-the-Hill this year.
TfL will shortly showcase its plans by fitting out a mock-up tube station to show how the next generation will look before the commercialisation programme starts late next year subject to planning permission.
Mike Brown, managing director of London Underground said: “Our customers rightly have increasing expectations of us. We are looking at how we might improve the environment and services offered at our stations while improving the journey experience and supporting the wider communities in which our stations are located.”
Commuters will be able use their smart phones to shop at virtual supermarkets which are already commonplace in the subway in Seoul and Shanghai. They will be able to scan barcodes from electronic screens with pictures of the goods which will be delivered to their homes within 48 hours.
Chief Executive of London First, Baroness Jo Valentine said: “This is a very good starting point and good news for retailers and commuters in London. London Underground is sitting on a large property portfolio and much more can be done to maximise its commercial potential.
“Every pound raised can help support future investment and keep fares down for hard-pressed commuters. It could also make the experience of travelling on the tube more enjoyable”.
TfL wants to further exploit the growth in internet shopping by introducing collection points at stations so commuters do not have to wait in for goods ordered online but can collect them on their journey home.
TfL believe some of the revenue produced from the new retail areas can be used to restore sites. London Underground offices at street level could be converted into shops, under the proposal.
Network Rail has created shopping mezzanines at King’s Cross and Waterloo while Heathrow airport earns 17.5 per cent of its income from commercial space. TfL claim that the proposal is not a means to cut station staff from its payroll which would be fiercely resisted by unions.
Mr Brown said: “We remain committed to having our staff on each of our stations, across the London Underground Network, with visible assistance for our customers where they need it most.”
Some stations, such as Victoria, will not be considered on the basis that they already suffer overcrowding in peak hours.
Previous Post
Demand for Yorkshire Industrial Property Doubled in 2012
