A massive tax scam probe has been begun into a number of American candy stores swarming Oxford Street and the West End of London, including the major Kingdom of Sweets chain.
The deluge of garish, overpriced US-themed confectionery and souvenir stores that have been taking over traditional high street retailers on one of the world’s most famous shopping avenues, including HMV’s previous flagship site, has long been a source of concern.
Between Marble Arch and Tottenham Court Road stations alone, there are now at least ten candy businesses, amounting to around one every 200 yards, with some also offering additional services such as foreign currency conversion.
More than 30 shops in the West End are being investigated by the council for allegedly avoiding paying business rates worth at least £5.4 million. These are owned by a range of companies and include shops selling souvenirs and vaping equipment, in addition to candy outlets selling packets of Jolly Ranchers sweets for as much as £45.
Kingdom of Sweets, which has more than 15 locations, is one of the businesses being examined by Westminster City Council for allegedly dodging business rates.
We can also tell that the brand, as well as several of its competitors, use TikTok, Instagram, and YouTube to entice kids into their stores. There has been an increase in the number of videos in which young people consume super-sour or sweet American sweets and beverages for the first time.
Others captured personnel handing out free goodies to visitors, including some who appeared to be still in primary school, simply for showing up and giving a fist bump.
According to the campaign organization Action On Sugar, the retailers are taking advantage of a loophole that allows imported US chocolates and confectionery to be sold without the same sugar level limitations as UK-made products.
It means that products sold in American-themed superstores contain nearly double the amount of sugar that a British child should take on a daily basis, even in a small single serving. The targeting of youngsters, according to Action on Sugar, is “appalling.”
Officials investigating retailers’ tax affairs are said to be concerned about a rumored practice in which owners of a single store name set up a slew of limited companies to act as its legal owners, then close the companies before they become liable for business rates. Croftray Limited and Old Green Limited, both of which share directors with Kingdom of Sweets, have already been shut up for owing £2 million in rates.
The council is also understood to be concerned about another alleged tactic used by rivals of the Kingdom of Sweets which sees shops set up in empty buildings to avoid the landlord having to pay business rates on an empty premises, before closing and leaving before the shopkeepers become liable for the tax themselves. There is no suggestion Kingdom of Sweets has been doing this.
Kingdom of Sweets has been sought for comment. There is no allegation any of the shops pictured in this story are under investigation.
Westminster’s Trading Standards department is also investigating inflated prices at a number of businesses, including up to £20 for a single bag of chocolates and £10 for a Lucky Charms cereal box. This is on top of accusations that some stores have no prices at all on their merchandise.
Some of the outlets have also been accused of selling expired food and counterfeit goods, and the planning department is investigating whether these establishments are advertising illegally.
‘Anyone strolling down Oxford Street is struck by the ever rising number of US style confectionery stores and poor quality souvenir businesses,’ said Councillor Adam Hug, leader of Westminster City Council.
They are not only an eyesore, but they also pose a threat to the status and worth of what is meant to be the country’s most important shopping strip.
‘The problem is that owners of buildings are turning a blind eye to those who sublet them as it means they are not liable for business rates. That’s why we have a rash of US candy stores in prestige locations.
‘This needs to stop and we will be stepping up pressure on landlords to make it clear they are responsible for Oxford Street being overrun with these kinds of stores. The people selling overpriced sweets are cheating the UK taxpayer and very often swindling their customers into the bargain.’
It comes amid concerns that the rash of American candy stores is harming the West End’s status as an attractive shopping destination.
The boom in the colourful shops filled with loud music and bubblegum smells has swallowed other stores struggling to survive – with many famous retailers such as Topshop, House of Fraser and Debenhams closing their doors.
The New West End Company business group pointed out that the shops were not in keeping with the ‘evolving face of the high street, nor modern shopping habits’.
The present-day American sweet shops followed the lead of Chase Manders, now 40, who started importing US sweets to Britain 18 years ago and successfully sold them on a pick ‘n’ mix stand in a shopping centre in Barnsley.
His Kingdom of Sweets brand opened its first store in London by 2012 before a further five shops opened across the capital – but by 2018 his employees noticed that competitors were visiting the stores and taking photographs.
The sweets then started to pop up in normal London tourist shops as another offering – and now, a range of the shops operate under different names but with almost entirely the same products and very similar decoration.
Then, the development that really caused a stir on social media came earlier this year when the famous HMV store was unceremoniously turned into a sweet shop – with the original ‘His Master’s Voice’ sign and logo covered up.
It was initially partially covered in February to read ‘His Master’s American Candy’ – then last month the whole of the sign was covered up with black cladding before being decorated with US flags and the words ‘Candy World’.
Among the names of the other sweet shops on Oxford Street are ‘American Candy Land’, ‘Worldwide Candy: The House of American Candy’, ‘American Candy’, ‘Candy Surprise’, ‘Candy Shop’ and ‘American Candy World’.
However, Kingdom of Sweets is still the best known brand, and describes itself on its website as offering a ‘never-ending variety of memory lane pleasers, children’s favourites and inspirational gift ideas’, adding: ‘We stock products loved by all generations, and our shops are open till late every day. We are the masters of repeat business, and other shops love to be nearby.’
The company adds that its ‘desire to create a dazzling one-stop confectionery experience for all the family encouraged expansion into larger stores, culminating in the flagship store on London’s Leicester Square, the biggest collection of sweets in the country’.
The Kingdom of Sweets, for example, uses aroma-diffusing technology to convince people to buy Twinkies, Oreos, and Cheetos.
When MailOnline visited, however, many of the stores were deserted, with some employees fearful that the boom in American sweets would come crashing down.
To accommodate consumer demand, one employee acknowledged that the store was originally stocked with American sweets and has since reverted to selling London goods in half the capacity.
Others specialize in other tourist items, such as vaping equipment and phone cases, yet the shops still sell candies at exorbitant costs.
‘The entire business used to sell only sweets,’ one employee recalled. Because that’s what the customers wanted, we carried mementos back with us. ‘Oxford Street has far too many sweet shops to make it worthwhile.’
American Candy World executives indicate that the average consumer spends between £25 and £30 on six to seven items, and that the stock’s high pricing is due to high import costs, which have been widely criticized.
Workers attribute the rise in popularity of American sweet shops to the popularity of YouTube and TikTok videos in which consumers test new American snack foods.
The growth of American confectionery shops on Oxford Street, however, has divided buyers, according to MailOnline. Isobel, nine, and Caitlin, seven, were brought to buy Wonka chocolate bars by Joanna Ionnesca, 37, an accountant from East London.
‘I adore them,’ she remarked. I think it’s a great pleasure for the kids to go somewhere new and try something new. Because there is such a large assortment, I assume American sweets are the most popular.
‘I’d enjoy it if they could try to bring some Italian sweets; there are so many delicious things out there,’ says the author.
Rea Qunta, 35, a piano teacher from Belsize Park, North London, bought Toxic Waste sour sweets with her daughter Marina, nine. ‘It’s incredibly colorful and eye-catching,’ she explained.
‘We’re not big sweet eaters, and as a kid, I never let Marina have sweets.’ I’m not a huge fan of sweets because they’re unhealthy for your teeth. I think British chocolate is superior than American chocolate, however there is a larger assortment of sweets here than in British stores. It demonstrates how popular American goods are.
Jennifer McConnell, 34, who was with her son Jacob, five, said: ‘We live in Spain and there’s nothing like it there. I spent some time living in California so I suppose it’s a bit of nostalgia as well.
‘It sounds weird, but I think it’s actually great for kids to have a healthy attitude to sweets – something that can be enjoyed but to not overdo. I don’t have sweets in the house, typically.’
‘But more importantly, nobody wants to see the loss of jobs which would come with a long-term decline of an Oxford Street District filled with empty or derelict buildings.’
Katharine Jenner, nutritionist and director at Action On Sugar, told MailOnline: ‘It’s appalling that this new breed of American candy shops are taking advantage of the pandemic to sell their sweet treats – many of which lead to excessive calorie intake, as well as causing huge damage to teeth.
‘Supermarkets and manufacturers are supposed to be reducing sugar in sweet foods and are now subject to legal restrictions on how they can promote unhealthy foods. ‘Imported US products are not subject to the same restrictions which is outrageous.
If anything, these empty stores should be offered to businesses that champion good health rather than adding to the problem and costing the NHS.’
Jace Tyrrell, chief executive of the New West End Company business group, told MailOnline that the sweet and souvenir shops are not in keeping with the ‘evolving face of the high street, nor modern shopping habits’.
He said: ‘The Covid pandemic has been incredibly challenging for high streets across the UK, and unfortunately Oxford Street is no different. Over the last two years some struggling retailers have had to make the difficult decision to close their doors for good, which has led to an increasing number of empty retail units being filled with sweet or souvenir shops, so that landlords can guarantee the payment of business rates.
‘We don’t believe that these stores are in keeping with the evolving face of the high street, nor modern shopping habits. We are therefore working with a number of local partners to revitalise Oxford Street and are already welcoming a number of new and exciting brands to the area.
‘The likes of Ikea, Gymshark and Swingers are enhancing the makeup of the district, while we are also utilising empty retail units to create pop-up stores that support local small businesses. However, to further improve the high street we need the support of the Government, starting with the long overdue reform of business rates.
‘High business rates are currently strangling a range of viable businesses that could otherwise be major contributors – not only on Oxford Street – but also across high streets up and down the country.’