The iconic Savile Row tailors, renowned for their exquisite craftsmanship and centuries-old tradition, are currently facing an unprecedented existential crisis. The UK government’s decision to put an end to duty-free shopping for tourists could sound the death knell for these historic businesses that have long been a symbol of British sartorial elegance.
Even before the recent government announcement, the Covid-19 pandemic had already inflicted a heavy toll on Savile Row tailors. The widespread closure of stores and a drastic drop in demand for formal attire due to travel restrictions and the rise of remote work have left these esteemed tailors struggling to stay afloat. Now, with the impending elimination of VAT refunds for overseas visitors, the challenges facing Savile Row businesses are set to intensify further.
A report by the Times newspaper has sounded the alarm, warning that some of London’s oldest and most revered establishments are teetering on the brink of extinction. In response to this dire situation, Savile Row tailors have made a desperate plea to the Chancellor, emphasizing that the loss of VAT-free shopping privileges poses a grave threat to their survival.
Simon Cundey, the managing director of Henry Poole, has voiced deep concerns over the government’s decision, fearing that it will drive both business opportunities and revenue away from the UK to rival fashion capitals such as Paris or Rome. Neil Clifford, chairman of Turnbull & Asser, has echoed these apprehensions, foreseeing a scenario where downsizing of production teams and a significant downturn in foot traffic at St. James could become inevitable.
The Centre for Economics and Business Research has projected that the cessation of VAT refunds for international visitors could result in a staggering £3.5 billion revenue loss for UK retailers. Given that foreign tourists contributed approximately £28.4 billion to the British economy last year, reclaiming £2.5 billion in VAT, the economic repercussions of this policy reversal could be seismic.
As Savile Row tailors brace themselves for an uncertain future, their fate hangs in the balance pending the UK government’s response to their cries for assistance. The resilience and survival of one of London’s most cherished and historic industries now hinge on the resolution of this critical issue.
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BBC News
Financial Times
