"There were four armed policemen trying to bring him back to life. His friend was holding his hand. He couldn't talk. Then he just dropped his hand as if he had given up.
"When the police told his friend that he wasn't going to make it, he just started screaming. There was blood everywhere. I ran into Boots, I was scared something else was going to happen."
A fight is thought to have taken place shortly before the incident. Seven arrests were made and a lock knife was understood to have been recovered from a nearby street. Grieving members of the victim's family arrived at the scene and were comforted by officers.
Rumours spread on Twitter that someone had been shot while other users posted images of a blood-splattered flick-knife lying near a cordon.
Lance Gracious wrote on Twitter: "Someone stabbed outside Footlocker Oxford Street, it was Christmas yesterday, what's up with these people?"
A large section of Oxford Street was closed as forensic teams scoured the area. Debenhams, Boots and The Disney Store were closed.
It is believed paramedics attempted to revive the injured man but he was pronounced dead on arrival at hospital.
A spokesman for The Metropolitan Police said: "The victim was stabbed at the junction between Oxford Street and Stratford Place, at about 13:45 GMT, close to Bond Street Tube station.
"He is thought to be in his late teens or early 20s and died at the scene.
"A section of Oxford Street, close to the underground station, has been closed while investigations continue."
The death came as huge numbers of Britons were expected to spend ?1.8 billion in a high street stampede as the Christmas sales started today.
Shoppers in London had already faced disruption as Tube went on strike over a pay dispute.
Earlier in the day minor tussles broke out as people fought to get their hands on cut-price handbags from labels such as Prada and Gucci.
Clothing retailer Next employed staff to stand outside marshalling the queues as they filed inside.
Many stores had slashed the prices of some goods by over 70 per cent, and introduced special 'Boxing Day only' deals on certain popular items.
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