More than one million shoppers visited the area at last year's event
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Close to 1.5m shoppers are expected to descend on parts of the West End following a ban on traffic in the area.
Oxford Street, Regent Street and Bond Street will be pedestrianised until 2000 GMT as part of Shop West End VIP (Very Important Pedestrians) Day.
It is the third year the event has been held which will feature carol singers, artists, jugglers and other performers.
Last year more than one million shoppers visited the area during the event.
'Fantastic freedom'
"What it will create for the shoppers is a fantastic freedom to move," said Jace Tyrell, from the New West End Company - which has organised the event.
"Shoppers will be able to take over the streets and have a more festive fun atmosphere to enjoy Christmas shopping in the West End."
The move has created two thirds more space in the area and organisers hope to remove buses from the shopping district within five years.
London's Mayor Ken Livingstone has said he would like to make the whole area traffic-free with a tram service running along Oxford Street.
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