Revitalising London’s high streets: a BID’s vision for retail

The significance of bricks-and-mortar experiences remains paramount. Steve Medway, CEO of Knightsbridge Partnership and King’s Road Partnership, two Business Improvement Districts (BIDs), is reshaping some of London’s most iconic areas. With decades of experience in retail and BID management, Medway shares valuable insights into the challenges, strategies, and future of urban retail.

A retail journey

Medway’s career trajectory is steeped in retail. “It all started back when I was at university many, many years ago, back in 2001,” he recalls. His first foray was with Gap as a Saturday employee, a role he found captivating. “I loved it,” he says, highlighting the era when retail was thriving with sufficient staff and vibrant in-store dynamics. After completing his degree in international relations, Medway chose Gap over a potential career at the Foreign Office, committing fully to the retail world.

“Gap taught me everything I know today,” Medway explains, reflecting on his 14 years with the company, where he eventually managed stores on Oxford Street. “You were fully responsible for everything in that store—people, the way it looked, HR. You had full accountability, and not a lot of retailers gave you that.” These formative years instilled transferable skills and a deep appreciation for retail’s potential. His experiences also provided insight into the structural shifts that would later shape the industry, such as the decline of certain high street giants.

“Pre-Brexit, visitors could reclaim 12.5% VAT, a huge incentive for high-spending tourists.”

The birth of BIDs

Medway’s introduction to BIDs came through his engagement with the New West End Company, the largest BID in the UK, representing key retail streets such as Oxford Street and Bond Street. “I volunteered to chair one of their groups and got really excited about the program and the influence they had on such an important area of London,” he says. It was during this period that Medway began to see the potential for BIDs to address the multifaceted challenges facing retail districts.

The concept of BIDs, introduced to the UK two decades ago, originated in the US. “The government wanted to look at the high streets and understand how they could get private investment to regenerate and deliver services that councils weren’t providing anymore,” Medway explains. These private-public partnerships have since become a cornerstone for urban regeneration, with 350 BIDs across the UK generating around £150 million annually. Medway notes that BIDs are uniquely positioned to bridge the gap between public services and private needs, enabling high streets to adapt to changing consumer habits.

Transforming Knightsbridge and King’s Road

Medway now leads two prominent London BIDs. “Knightsbridge is one of two international centres in London, alongside the West End, but it hadn’t had an organisation to represent businesses until now,” he shares. Years of neglect had led to its deterioration, prompting a coalition of residents, businesses, and local politicians to establish a BID.

The process of forming a BID is meticulous, involving feasibility studies, business plans, and ballots. “Every five years, you have to go to ballot,” Medway explains. “Members vote you in, and you’ve got five years to prove and deliver against your business plan.” Funding comes from a levy on rateable property values, with Knightsbridge generating £1.2 million annually, all reinvested into the district. This systematic approach ensures that every initiative aligns with the long-term vision for the area, creating a sustainable framework for growth.

“King’s Road bounced back quicker than any other retail destination in London because 65% of its customers are local.”

Key initiatives

The BIDs’ work falls into three core areas: improving the environment, destination marketing, and advocacy. Medway elaborates: “We have a security team that operates 24/7, working closely with the police. We also clean the streets, providing a top-up service to ensure the area is pristine for international visitors.” These efforts address both immediate and long-term needs, ensuring that the districts remain attractive and functional for all stakeholders.

One of their standout projects is the Knightsbridge Place Strategy. “It’s looking at the next 10-15 years to create an area that’s fit for purpose for residents, workers, and visitors,” Medway says. The strategy involves collaboration with local authorities, property owners, and businesses to develop a unified vision for the district’s future. This holistic approach aims to balance historical preservation with modern innovation, creating spaces that resonate with diverse audiences.

Balancing stakeholder interests

One unique challenge of running a BID is uniting diverse stakeholders. “You’ve got residents, businesses, and councils, all with their own views,” Medway notes. “You’ve got to bring the whole community on the journey.” This inclusive approach is evident in initiatives like co-design workshops, where stakeholders share their aspirations and concerns for the area. These sessions foster a sense of ownership among participants, ensuring that projects reflect the collective vision of the community.

“BIDs bridge the gap between public services and private needs, enabling high streets to adapt to changing consumer habits.”

Medway emphasises the importance of clear communication and transparency. “We report back to our members annually, detailing what we’ve achieved and how we’re progressing toward our goals,” he explains. By maintaining open lines of dialogue, the BIDs build trust and encourage active participation.

For BIDs to succeed, tangible results are essential. Medway lists key performance indicators: “We track footfall, sales data, crime rates, and vacancy rates. For example, our security team recovered £120,000 worth of stolen goods last year. These metrics help us demonstrate value to our members.”

Tracking these metrics allows BIDs to adapt their strategies in real-time, ensuring that resources are allocated effectively. Medway also highlights the role of technology in monitoring performance, from footfall counters to social media analytics, which provide actionable insights into consumer behaviour.

The case for tax-free shopping

Advocacy is another critical role for BIDs, and Medway’s focus is sharp on reinstating tax-free shopping for international visitors. “Pre-Brexit, visitors could reclaim 12.5% VAT, a huge incentive for high-spending tourists from the Middle East, China, and the US. Its removal has shifted spending to Paris and Milan,” he argues. Research indicates reinstating tax-free shopping could generate £12 billion in sales and £6 billion for the exchequer. “It’s madness that the government won’t reinstate it,” Medway asserts.

The impact of this policy extends beyond London. “Regional airports and cities would also benefit. Encouraging European visitors to explore the UK’s diverse retail offerings could revitalize high streets across the country.”

Despite challenges like rising costs and business rates, Medway remains optimistic about retail’s future. “Retail always goes through structural changes,” he says. “We’re seeing exciting new brands creating immersive experiences. For example, Farm Rio’s flagship on King’s Road has a bar and a cafe, making it a destination in itself.”

Medway also highlights the shift toward localism post-pandemic. “King’s Road bounced back quicker than any other retail destination in London because 65% of its customers are local,” he explains. Areas with a strong local customer base, like Marylebone, are thriving, while districts reliant on international visitors face steeper challenges.

This shift underscores the importance of understanding customer demographics. “Retailers need to be strategic about where they open stores,” Medway advises. “It’s not just about footfall; it’s about the quality of that footfall.”

As BIDs mature, collaboration among them is growing. “Within Westminster alone, there are 17 BIDs. We meet monthly to share best practices and coordinate on campaigns,” Medway says. The collective voice of BIDs is driving transformative projects across London, from pedestrianised streets to vibrant Christmas lights.

Medway also points to international collaboration as a growing trend. “We’re learning from successful BIDs in cities like New York and Paris,” he shares. These exchanges provide valuable perspectives on tackling shared challenges, such as climate change and urban mobility.

Medway’s vision for the future is rooted in adaptability and innovation. “High streets need to evolve beyond retail. It’s about the whole experience—shopping, dining, and leisure. Creating destinations that people want to visit and spend time in is key,” he concludes.