Recent redevelopment has seen the former 1960s-built South Street bus station demolished, to make way for a new row of shops, and the current facility built behind that site.

Prior to bus lanes being put in, all buses followed the east to west flow of traffic along this section of South Street.

This was subject to controversy from the first week of bus deregulation, as the company refused to allow any of their competitors, Island Travel and Gange's Minicoaches, into the station.

[citation needed] Southern Vectis' refusal to allow Gange's Minicoaches to use Newport bus station prompted an investigation in 1987 by the Office of Fair Trading.

[3] The OFT report, published in 1988, found Southern Vectis' behaviour to be anti-competitive, preventing smaller bus operators from establishing awareness and competing effectively.

[citation needed] The plans for redevelopment were first revealed in September 2003 for 60,000 square feet (5,600 m2) of retail space to be created on the old bus station site.

Buses set down in the bus lane, and stopped to pick up passengers at one of the three bus stands in Church Litten, lettered A, B or C.[9] In April 2011, following the closure of tourist information centres across the island by the Isle of Wight Council, Southern Vectis agreed to launch a new visitor information service in the main island towns.