Published
Mar 27, 2019
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UK stores 'benefit from French protests' as tourist spend moves to Britain

Published
Mar 27, 2019

The UK may be suffering from consumer caution on the part of local shoppers, but international visitors who are eligible to claim VAT refunds are continuing to boost turnover in key shopping destinations, new figures show.

The UK's luxury and fashion stores have benefited from a surge in global tourists this year - Selfridges



Tax-free payments facilitator Planet said that UK sales to international shoppers grew in February, suggesting retailers may be the unlikely beneficiaries of French yellow vest protests. 

The UK saw an unexpected sales spike of 10% during the month and this came at the same time as tax-free sales in France dropped by 14% due to the deterrent effect of the yellow vest protestors targeting high-end shopping districts.

Planet also said that the top five major source markets for UK retailers (China, USA, Kuwait, Hong Kong and the UAE) registered double-digit year-on-year sales growth in February, with American shoppers seeing an astonishing 51% increase.

Luxury fashion is one of the key categories that global tourists spend their money on when visiting the UK.

February’s increase came after several months of steady improvement in the latter half of 2018 and “further cements the UK’s status as one of Europe’s most attractive retail destinations,” Planet said.

As mentioned, spending really surged among US shoppers in the UK and the growth figure was the highest since May 2017 – a time when Britain was seeing a tax-free sales boom due to the result of the Brexit referendum having sent the value of the pound much lower.

The average transaction value (ATV) among US shoppers was its highest in over three years, at €647 (the figure is in euros as Planet analyses data Europe-wide). That’s almost 20% more than the previous high. Planet said it wasn’t only the weak UK currency that was having an effect, but general consumer confidence within the US that has “paid dividends for retailers in Europe, who are benefitting from US shoppers’ increased willingness to spend abroad.”

But Chinese shoppers held on to their position as UK retailers’ top source market with a 35% share of UK tax-fee spend in February. This was a 36-month high and the 27% year-on-year sales growth was the largest seen in almost two years.

David Perrotta, UK Country Manager at Planet, said several months of improving sales in Britain seem to suggest “that the country is “re-establishing its attractiveness as a destination for visitors looking to  spend in Europe after a challenging 18 months.”

He also said that the company’s figures suggest the UK and Spain are the biggest beneficiaries of international travellers being less willing to visit France.

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