I have visited Oxford Street in London in the run-up to Christmas every year for the past decade and it's always a great day out; you'll find all the most famous shopping names in the UK (except for Hamleys in Regent Street and Harrods in Knightsbridge but you can fit them into the same day easily too). The Christmas lights and displays make it extra special and there are thousands of options to stop and have something to eat & drink halfway through. I've read some of the less positive reviews of Oxford Street below, and yes it's busy and if you're looking for bargains it's not the place to go. If you can, go during the week rather than at the weekend, and restrict your buying to a few special things that you can't buy locally or elsewhere; that way you have a great day out, something to remember it by and you don't break the bank. Don't be put off, do go; I'm not a shopaholic, and I don't tend to like busy places or crowds of people, but if you do Oxford Street the way I've described above, it's still definitely worth it.
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