Refinitiv Newscasts - London losing pull for luxury shoppers - experts

Global Blue Holding

15/03/2023 10:38

Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_tubggmeu&referenceId=tag:reuters.com,2023:newsml_RW730214032023RP1_930&pageId=RefinitivNewscasts
Source: Reuters

Description: London is in danger of losing its pull as a destination for
luxury retail shopping as tourists from the United States, China and the Gulf
flock instead to the more attractive tax regimes of Paris and Milan. Francis
Maguire reports.
Short Link: https://refini.tv/3lg71As

Video Transcript:

London is one of the world's best known luxury retail hubs. But major stores
like Harrods fear tourists from the US, China, and the Gulf could head for
Paris and Milan instead. Experts say high-end consumers have been drawn away
from London as the European Union offers tax-free shopping that amounts to a
big discount. Steve Medway is CEO of lobby group, the Knightsbridge
Partnership.

You know, we've heard from some brands that they're prioritizing Paris for
investment in their stores, or even new openings of brands that don't exist in
London are prioritizing Paris because they're seeing the sales and the people
there, you know, shopping.

Data from the tax refund firm Global Blue showed spending by US visitors to
Britain is back at pre-health crisis levels. But spending by American visitors
has more than doubled in France and Italy, where they can reclaim the tax on
goods. Spending by visitors from Gulf states to the UK is still well below
earlier levels, while in France it's doubled. To make things worse, British
shoppers themselves are also spending more in the EU as they too can get the
tax break. Industry executives have urged the UK to become more competitive
and bring back tax-free shopping for tourists. Sarah Jaconelli is Director of
Communications for New West End Company, which represents 600 businesses.

We could have been, after Brexit, the biggest global shopping destination, the
closest global shopping destination for the whole of Europe to come here,
that's 400 million EU residents would have been eligible for tax free shopping
in the UK.

The tax-free benefit ended in 2020 after Britain left the EU. Ministers
dropped the tax break to help raise revenue, saying an assessment found
VAT-free shopping didn't have a big impact on tourism. Luxury brands say the
latest data tells a different story