Friday 10 June 2022 10:37 AM Huge tax probe is launched into American candy stores on London's Oxford Street trends now
A huge tax scam investigation has been launched into a string of American candy stores swamping Oxford Street and the West End of London including the major Kingdom of Sweets chain, MailOnline can exclusively reveal.
There has long been concern about the deluge of tacky, overpriced US-themed sweet and souvenir shops that have been taking over traditional high street retailers on one of the world's most famous shopping streets, including HMV's old flagship site. There are now at least ten candy stores between Marble Arch and Tottenham Court Road stations alone - equating to roughly one every 200 yards - with some offering other services like foreign currency exchange.
The council is now probing more than 30 shops across the West End for allegedly avoiding business rates amounting to at least £5.4million. These are owned by a variety of companies and - in addition to candy stores selling packets of Jolly Ranchers sweets for as much as £45 - include shops offering other items like souvenirs and vaping equipment.
Kingdom of Sweets, which has more than 15 branches, is among the shops being investigated by Westminster City Council for allegedly avoiding business rates, MailOnline understands.
We can also reveal the brand and some of its rivals are using TikTok, Instagram and YouTube to lure children into their store. There has been a boom in videos where youngsters try super-sour or sweet American treats and drinks for the first time. Others filmed staff giving visitors, including some apparently still in primary school, free sweets just for popping in and giving a fist bump.
Campaign group Action On Sugar said the stores are exploiting a loophole that means imported US chocolates and candy do not face the same restrictions on sugar content as UK-made products. It means the American-themed superstores sell products containing almost treble the amount of sugar a British child should consume daily, even in a small single serving. Action On Sugar called the targeting of children 'appalling'.
Officials probing retailers' tax affairs are understood to be concerned about a purported tactic whereby bosses using a single store name set up numerous limited companies to serve as its legal owner, before closing the companies prior to them being liable for business rates. Two companies which share directors with Kingdom of Sweets - Croftray Limited and Old Green Limited - have already been wound up owing £2million in rates.
The council is also understood to be concerned about another alleged tactic used by rivals of 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 approached for comment. There is no suggestion any of the shops pictured in this article are under investigation.
CANDY STORE TAKEOVER OVER THE WEST END - BEFORE & AFTER: HMV's flagship store has been unceremoniously turned into a 'Candy World'
CANDY STORE TAKEOVER OVER THE WEST END - BEFORE & AFTER: The 'American Sweets & Souvenirs' shop on Oxford Street (right) was once a Ryman stationery shop (left). There is no suggestion any of the shops featured in MailOnline's article are being investigated by the council
BEFORE & AFTER: The 'Candylicious London' store on Oxford Street (right) was once a Schuh shop (left)
BEFORE & AFTER: A Coast clothes store on Oxford Street (left) was once in the place of what is now Kingdom of Sweets (right)
Children are being targeted with TikTok videos such as this one, which shows a child trying super sour sweets outside an American Candy Store in central London
In another social media film, this child was shown winning a competition to get 'free candy'
Two children dancing with excitement outside a Kingdom of Sweets store, which has been compared to a theme park for candy
Westminster's Trading Standards team are also looking at inflated prices at a range of chains including up to £20 for a single bag of sweets and £10 for a cereal box of Lucky Charms. This is in addition to claims some stores have no prices on their goods at all.
Some of the stores are also accused of selling out-of-date food and counterfeit products, with the planning department also looking into whether these premises are advertising illegally.
Councillor Adam Hug, leader of Westminster City Council, said: 'Anyone walking down Oxford Street is struck by the ever expanding number of US style sweet shops and poor quality souvenir outlets. They are not only an eye sore; they are a threat to the status and value of what is supposed to be the nation's premier shopping street.
'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.'
BEFORE & AFTER: The 'American Candy Store' on Oxford Street (right) is in a shop that once housed a Footasylum (left)
BEFORE & AFTER: The 'Americandy' store with Wonka branding (right) is in a former Accessorize and Monsoon store (left)
BEFORE & AFTER: 'American Sweet Dreams' (right) is on the site of a smaller Holland & Barrett next to an Ann Summers (left)
BEFORE & AFTER: A Phones 4U store (left) used to be on the site of what is now a 'Welcome London' souvenir shop (right)
BEFORE & AFTER: A Boots store (left) used to occupy the space where the 'American Candy Shop' is now located (right)
BEFORE & AFTER: A JD Sports store (left) was once in the retail space now used by a store called 'Candy Shop' (right)
BEFORE & AFTER: 'Vape shops' are popping up, such as in the old St Anne's Church entrance (left) on Shaftesbury Avenue
Councillor Adam Hug, leader of Westminster City Council, said: 'Anyone walking down Oxford Street is struck by the ever-expanding number of US style sweet shops and poor quality souvenir outlets. They are not only an eye sore; they are a threat to the status and value of what is supposed to be the nation's premier shopping street'
Chase Manders is behind Kingdom of Sweets
The American sweet shops found across Oxford Street are following in the footsteps of a pick 'n' mix stand located in a shopping centre in Barnsley.
Chase Manders started importing American sweets to Britain in 2004 and found they were a massive hit with locals in South Yorkshire.
Companies House now lists Mr Manders as the sole director of London-based Kingdom of Sweets Ltd which was incorporated in 2017.
The 40-year-old opened his first Kingdom of Sweets Oxford Street shop in 2012 and his stores were very much the main player in that market for the next few years with five other shops opening across the capital.
Around the same time the M&M's World in Leicester Square - owned by the confectionary giant Mars - opened in 2011, which was 14 years after the company's first outlet was launched in Las Vegas.
But by 2018, competitors such as 'Candy Shop', 'American Candy' and 'American Candy World' began to emerge - with Kingdom of Sweets claiming that rivals were visiting their stores and taking photographs.
There was then a surge of openings during the pandemic as people made the most of being able to avoid shutting during lockdowns because they were classed as 'essential retailers' for selling food.
Now, a range of the shops operate under different names but offering almost entirely the same products and very similar decoration - and perhaps the most controversial one is at the old HMV flagship store which unceremoniously turned into a sweet shop in February.
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It comes amid concerns 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
