WeWork could move into Debenhams on Oxford Street as retailers seek solutions for excess space

Debenhams is in talks to rent out space in its Oxford Street flagship store to co-working space provider WeWork, it has emerged.

The retailer has put out feelers to find occupants for excess space in its large stores, according to Bloomberg.

WeWork has become London’s biggest occupier of office space after rapid expansion in the past three years. The talks with Debenhams are said to be at an early stage.

Read more: Behavioural changes fuel rise of co-working, with London leading the way

The move follows in the footsteps of several other retailers which have opened store-in-store concessions, or filled space with restaurants, cafes, and even gyms.

Sainsbury’s has opened branches of Argos in its larger stores, while Next is trialling an in-store concession in Tesco branches.

Sales at the UK’s online-only retailers jumped to £8.4bn in 2017, as shoppers shifted habits towards digital spending. Many retailers now find themselves with excess space.

Meanwhile co-working spaces have become the saviour of many landlords, filling empty units as the demand for flexible working rises.

Read more: Debenhams cuts 320 middle managers in cost-saving drive