The sharp drop in the value of the pound following the Brexit referendum has convinced more tourists to shop more in the UK, helping drive sales.
According to new data from tax-free shopping firm Global Blue, tax-free shopping sales were up 7% year-on-year in July. Sales of watches and jewellery in particular did well during July (up 16.6%), while apparel sales were also higher.
The increased spending during the month was driven by tourists from Japan, Indonesia and the US – with Japanese tourists spending 96% more on a year-on-year basis, Indonesian tourists upping their spend by 88%, and US tourists splurging more by 22%. Chinese tourists continued to account for the biggest share of overall spending (32%), but their spending rose just 6% in the month.
Global Blue added that tourists from the Middle East did not spend too much more, but attributed this to the timing of Ramzan this year. However, Qatar maintained its position as the country with the highest average spend per transaction (at £1,642).
- …and this in an era of flat-line growth..
- Time to re-evaluate the potential of your tax-free channel initiatives?