Sydney’s Oxford Street is gearing up for the biggest party of the year: the 48th Sydney Gay and Lesbian Mardi Gras Parade. During a night full of dancing, partying and lots of glitter, more than 10,000 people will proudly march through the streets on 160 floats.
But once the color and bustle of Mardi Gras fade for another year, Oxford Street will be left to the challenges that have been reshaping the street for years.
Last year, about 300,000 partygoers attended the event, which generated $38 million for the local economy.
Among the Oxford Street traders counting down the days is sequin-filled menswear boutique Daly Male. An avid member of the LGBTQIA+ scene, the store is celebrating 40 years as one of the strip’s most recognizable retailers.
“Financially it’s definitely a good time for us,” owner Terry Daly told realcommercial.com.au. “And not just on parade day. Visitors from Melbourne and around the world come to enjoy the restaurants, clubs, shops and theaters for a week or more. It remains a hugely important cultural event for the street.”
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SYDNEY, AUSTRALIA – MARCH 01: Participants move along Oxford Street during the Sydney Gay and Lesbian Mardi Gras parade on March 1, 2025 in Sydney, Australia. The Sydney Gay and Lesbian Mardi Gras Parade began in 1978 as a march to commemorate the 1969 Stonewall riots in New York and has been held every year since to raise awareness of gay, lesbian, bisexual and transgender issues. (Photo by Brook Mitchell/Getty Images)
Stephan Gyory, owner of the Record Store and Darlinghurst Business Partnership member, agrees.
“It’s always a big night for Oxford Street and there’s definitely excitement in the air,” he said. “There was some disappointment about the cancellation of the afterparty, but I think this reflects a shift from the new CEO, who wants to bring the celebrations back in line with the queer community.”
Earlier this month, organizers confirmed that the festival’s signature afterparty, traditionally held at the Hordern Pavilion, would not go ahead this year due to funding pressures.
Mr Gyory thinks it will be busier at the top end nightclubs and bars along the strip.
“All the surrounding afterparties are sold out or have sold out, so the places are going to fill up. And that means money is being put back into local businesses, which is great.”
Color image of the famous Oxford Street in Sydney’s Paddington district.
On the Paddington side of Oxford Street, local pubs are also getting in on the Mardi Gras action, with neighborhood favorite The Wine Library hosting a drag-themed disco party on Friday evening.
“We thought it would be great if the community would throw a party before the parade,” said owner Tim Perlstone. “We don’t get as much foot traffic on parade night because we’re further down Oxford Street, but during Mardi Gras week there’s definitely a lot more energy on the streets than normal.”
Life after exclusions and lockdowns
Like King Street in NewtownOxford Street has weathered wave after wave of disruption over the past twenty years; The road improvements in 2005, increasing competition from Westfield centers in Pitt Street and Bondi Junction, and the 2014 lockout laws that affected nightlife. Covid followed, followed by pressure on the cost of living.
The result is pockets full of shuttered storefronts and graffiti. One of the worst affected stretches runs from Taylor Square to South Dowling Street and to the junction with Greens Road.
Mr Gyory says astronomical rents continue to be a major factor.
“I recently looked at a lease that was about the same size as my current store, and there was no way I could afford it. It was more than double what I’m paying now. It’s ridiculous.”
One of the worst affected stretches runs from Taylor Square to South Dowling Street. Image: realcommercial.com.au
He urged landlords to support emerging operators rather than seeking high rents.
“Of course landlords have to make money, but if you don’t have to make a billion dollars, why not take a chance with some young queer creatives and put something cool in there? We have the high-end retailers and the expensive boutique stuff, but we also want to keep that nice look.”
Local restaurateur and Paddo Collective co-founder Michael Fegent said the number of empty storefronts points to deeper problems in the leasing market.
“Investors who own property on Oxford Street are part of the problem,” he said. “Some stores remain empty for years because owners prefer higher rents, or because the tax breaks make it easier to bear a loss than sign a lease with a lower value.
“When you have all those empty stores, it hurts everyone. There needs to be more incentive to get those spaces occupied.”
‘It’s getting better’
Apart from rising rents, traders insist that Oxford Street’s unique mix of shops, hospitality and culture continues to attract young crowds.
“There have certainly been some tough times, but there are still plenty of people who want to get out and enjoy themselves,” Mr Perlstone said. “Even as younger customers drink less and spend less, they still meet friends, try non-alcoholic options and eat out at fancy restaurants.”
Lockout laws and Covid-19 have seen many venues close their doors, but locals say the street remains resilient. Image: realcommercial.com.au
Mr. Gyory believes the comic has proven to be more resilient than many expected.
“Obviously we’ve lost a few sites, but compared to Kings Cross, which was decimated, I think Oxford Street has managed to survive the lockout laws and the lockdowns,” he said.
“Kings Cross is built around weekend nightlife, while Oxford Street has always been more diverse. There’s retail, there’s food and new developments are coming forward. Things are going in the right direction.”
One of those projects is the Hotel The Olympia with 109 roomswhich opened last October on the former site of the Grand Pacific Blue Room nightclub and Academy Twin Cinemas, which had been vacant for a decade.
Events such as Mardi Gras bring the street to life. Image: realcommercial.com.au
Another example is Oxford & Foley, a commercial strip with renovated historic buildings that will bring new shops, restaurants and creative tenants to the area, including the new headquarters of Sony Music.
Despite delays due to disputes between builders and developers, several leases have opened in the new project, including Golf Wang, the fashion label founded by rapper Tyler, The Creator.
“I think having such a large operator moving here shows a lot of confidence. It proves that there is still a lot of love and economic promise for the street,” Mr Gyory said. “It’s going to be an interesting experiment. It’s exciting.”
Luxury retailers dominate the east side of Oxford Street in Paddington. Image: realcommercial.com.au
But not everyone is convinced.
“They’re setting up all these stores that no one goes to,” said Terry Daly, owner of Dale Male. “And I haven’t seen a single window display for Mardi Gras yet. What’s the point of being here if you’re not part of the street culture?”
“I have been here for 40 years and if we want to maintain the identity of Oxford Street we need more independent retailers.”
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