We survived lockout laws and Covid… but an infuriating problem could be what really destroys Oxford Street

Business owners fear one of Australia’s most iconic entertainment districts could be destroyed forever as ongoing construction projects threaten to drive them out of the area.

A number of shopfronts along Sydney’s Oxford Street have been stripped and covered in graffiti, while those still trading struggle to stay afloat.

It’s a far cry from the street’s famed history as one of the crown jewels of Sydney nightlife and the main venue for the annual Mardi Gras parade.

A number of business owners along the street have blamed cost-of-living pressures and ongoing construction projects for reducing footfall and sales.

One such project involves a major renovation of three blocks to create the new ‘Oxford & Foley’ precinct, which was expected to be completed last year.

But pedestrians are still affected by scaffolding over footpaths after construction timetable fell through with the projects now expected to be completed in July.

The other project impacting businesses is a new cycle path being built along Oxford Street following a concerted campaign by Mayor Clover Moore.

Ken Holmes, owner of underwear and swimwear store Aussie Boys, says the company’s sales are now “40 to 45 percent” below expectations.

A number of shopfronts along Sydney’s Oxford Street have been stripped and covered in graffiti, as those still trading struggle to stay afloat

Mr Holmes said he is now facing the closure of his shop after it opened more than 40 years ago, while it is flanked by building sites.

Lockout laws, the Covid pandemic and the cost of living crisis have ravaged the region, with bar owners also struggling to keep their doors open.

“The problem is that no one comes here because everyone says, ‘Don’t go to Oxford Street, there’s nothing there,’” he said. NCA NewsWire.

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

He added that reduced pedestrian traffic along the iconic street meant there are days when the company does not record sales.

Barriers and fencing now cover the front of Aussie Boys for the cycle path as construction continues on the Oxford & Foley precinct.

Investment company AsheMorgan started the process of building the precinct in 2019 by signing a 99-year lease on the council’s three properties with developer Toga Group.

The AsheMorgan website describes the project as a ‘prominent collection of character buildings providing a mix of basement and ground floor retail and upper floors of commercial accommodation, in a renowned urban village’.

Another project in Oxford Street's famous Taylor Square has led to much-loved bar Cafe Freda's announcing that last drinks will take place after Mardi Gras on March 1 (pictured, Mardi Gras in March 2024)

Another project in Oxford Street’s famous Taylor Square has led to much-loved bar Cafe Freda’s announcing that last drinks after Mardi Gras will take place on March 1 (pictured, Mardi Gras in March 2024)

But the extended construction time has forced the award-winning Big Poppa’s bar and restaurant, located in the center of the development, to close its doors.

A statement from restaurant management said the delays had increased the “impact on our business.”

“As you would have noticed, the block we live in has undergone redevelopment over the past 21 months,” the statement reads.

“We hope that construction will be completed as soon as possible and we can reopen our doors with some nice new neighbors.”

A spokesperson for TOGA said they have ‘worked diligently to minimize disruptions and communicate regularly with neighbors and tenants, to ensure the final development reflects the community’s passion for this iconic precinct’.

Another project in Oxford Street’s famous Taylor Square has led to much-loved bar Cafe Freda’s announcing that it will host its last post-Mardi Gras drinks on March 1.

Co-owner David Abram initially moved the bar from Chippendale in 2020 without knowing “how long we would stay at this iconic location.”

The building it is currently in will be redeveloped into a $14.6 million boutique hotel.

A City of Sydney spokesperson said it is still encouraging locals to support businesses despite the ongoing transformation.

“The City of Sydney continues to support local businesses with marketing through a range of online and outdoor channels and encourages residents and visitors to visit the strip during the improvement work,” the spokesperson told Newswire.

Daily Mail Australia approached the City of Sydney, TOGA and AsheMorgan for comment.