Sydney’s Oxford Street is gearing up for its biggest party of the year - the 48th Sydney Gay and Lesbian Mardi Gras Parade. A night of dancing, celebration and copious amounts of glitter, the parade will see more than 10,000 people march proudly down the street across 160 floats.
But once the colour and crowds of Mardi Gras fade for another year, Oxford Street will be left to grapple with challenges that have been reshaping the street for years.
Sydney's Oxford Street has faced years of turbulent foot traffic. Picture: Getty
Last year, around 300,000 partygoers attended the event, generating $38 million for the local economy.
Among Oxford Street traders counting down the days is sequin-filled menswear boutique Daly Male. A stalwart of the LGBTQIA+ scene, the store is celebrating 40 years as one of the strip’s most recognisable retailers.
“It’s definitely a good time for us financially,” owner Terry Daly told realcommercial.com.au. “And not just on parade day. Visitors from Melbourne and around the world come for a week or more to enjoy the restaurants, clubs, shopping and theatre. It remains a hugely important cultural event for the street.”
SYDNEY, AUSTRALIA - MARCH 01: Participants move along Oxford Street during the Sydney Gay and Lesbian Mardi Gras parade on March 01, 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 promote awareness of gay, lesbian, bisexual and transgender issues. (Photo by Brook Mitchell/Getty Images)
The Record Store owner and Darlinghurst Business Partnership member Stephan Gyory 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 after-party being cancelled, but I think it reflects a shift from the new CEO, who wants to bring the celebrations back in line with the queer community.”
Earlier this month, organisers confirmed the festival’s signature after-party, traditionally held at the Hordern Pavilion, would not go ahead this year due to funding pressures.
Mr Gyory believes the upside will be busier nightclubs and bars along the strip.
“All the surrounding after-parties are selling out or have sold out, so places are going to be packed. And that’s pouring money back into local businesses, which is great.”
Color image of the famous Oxford Street at Paddington neighbourhood of Sydney.
Up at the Paddington end of Oxford Street, local watering holes are also joining the Mardi Gras action, with neighbourhood favourite The Wine Library hosting a drag-themed disco party on Friday night.
“We thought it would be great for the community to throw a pre-parade celebration,” owner Tim Perlstone said. “We don’t get as much parade-night foot traffic because we’re further up Oxford Street, but during Mardi Gras week there’s definitely far more energy on the street than usual.”
Life after lockouts and lockdowns
Like King Street in Newtown, Oxford Street has weathered wave after wave of disruption over the past two decades; 2005 road upgrades, rising competition from Westfield centres at Pitt Street and Bondi Junction, and the 2014 lockout laws that dented its nightlife. Covid followed, then the cost-of-living squeeze.
The result is pockets of shuttered shopfronts tagged with graffiti. One of the hardest hit stretches runs from Taylor Square to South Dowling Street and onto the intersection of Greens Road.
Mr Gyory says astronomical rents continue to play a major factor.
“I looked at a tenancy the other day that was about the same size as my current shop, and there was no way I could afford it. It was more than double what I pay now. It’s ridiculous.”
One of the hardest hit stretches runs from Taylor Square to South Dowling Street. Picture: realcommercial.com.au
He urged landlords to back emerging operators instead of chasing top-end rents.
“Of course landlords need to make money, but if you don’t need to make a billion bucks, why not take a chance one some young queer creatives and put something cool in there? We’ve got the high-end retailers and the expensive boutique stuff, but we want to keep that beautiful grit too.”
Local restaurateur and Paddo Collective co-founder Michael Fegent said the number of empty shopfronts points to deeper issues in the leasing market.
“Investors who own property on Oxford Street are part of the problem,” he said. “Some shops sit vacant for years because owners would rather hold out for a higher rent, or because the tax breaks make it easier to carry a loss than sign a lower-value lease.
“When you’ve got all these empty shops, that hurts everyone. There needs to be more incentive to get those spaces occupied.”
‘Things are looking up’
Rising rents aside, traders insist Oxford Street’s unique mix of retail, hospitality and culture continues to draw young crowds.
“There’s been some tough times, for sure, but there are still plenty of people who want to go out and enjoy themselves,” said Mr Perlstone. “Even if younger customers are drinking and spending less, they’re still meeting friends, trying non-alcoholic options and dining out in upmarket venues.”
Lockout laws and Covid saw many venues close their doors, but locals say the street remains resilient. Picture: realcommercial.com.au
Mr Gyory believes the strip has proved more resilient than many expected.
“Sure, we lost a few venues, 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 was built around weekend nightlife, whereas Oxford Street has always been more diverse. There's retail, there's food, and there are new developments coming through. Things are looking up.”
One of those projects is the 109-room hotel The Olympia, which opened last October on the former site of the Grand Pacific Blue Room nightclub and Academy Twin Cinemas, which had sat empty for a decade.
Events like Mardi Gras bring the street to life. Picture: realcommercial.com.au
Another is Oxford & Foley, a commercial strip of renovated heritage buildings tipped to bring new retail, hospitality and creative tenants to the area, including Sony Music’s new headquarters.
Despite facing delays amid disputes between builders and developers, several tenancies have begun to open in the new development, including Golf Wang, the fashion label founded by rapper Tyler, The Creator.
“I think a big operator like that moving in shows a lot of faith. It proves there's still a lot of love and economic promise for the street” Mr Gyory said. “It will be an interesting experiment. It’s exciting.”
High-end retailers dominate the east end of Oxford Street in Paddington. Picture: realcommercial.com.au
But not everyone is convinced.
“They’re putting in all these shops that no one’s going to,” said Dale Male owner Terry Daly. “And I haven’t seen one window display for Mardi Gras. What’s the point of being here if you’re not part of the street’s culture?
“I’ve been here 40 years, and if we want to preserve Oxford Street’s identity, we need more independent retailers.”
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