Elite global shoppers are having a major impact on the UK retail market, with a recent study by Global Blue revealing that they spend an impressive €35,000 annually in British stores. This research, presented at the Walpole Luxury Summit in London, shows that the UK is the second favorite shopping destination for these ultra-high-spending consumers, following France.
Even though France remains the top choice for elite shoppers, the study indicates that they are spending more on average in the UK. These wealthy shoppers spend an average of €55,000 during their three international trips each year, with their purchases spread across 12 different transactions. The UK captured 31% of elite shopper traffic last year, with these consumers accounting for 24% of all tax-free shopping spend in the country, surpassing the global average.
Despite disruptions caused by the coronavirus outbreak on Chinese shopper activity, Chinese shoppers still represent the largest group of elite shoppers globally, followed by shoppers from South East Asia and Gulf countries. Interestingly, visitors from Gulf countries make up 30% of elite shoppers in the UK, showing a preference for the country over other destinations like France or Italy. These shoppers tend to stay for an average of two weeks in the UK, a longer duration compared to just three days in other countries.
Although elite shoppers have a taste for luxury goods, they tend to favor department stores for their purchases in the UK. Global Blue reported that 85% of their spending occurs in department stores, with establishments like Selfridges, Harrods, Harvey Nichols, and Liberty being popular choices. These consumers, also known as ‘Department Store Advocates,’ allocate 46% of their spending on watches and jewelry and 25% on fashion items.
Derrick Hardman, the UK Managing Director of Global Blue, emphasized the importance of elite shoppers for British stores, particularly in the current challenging retail climate. Understanding the behavior and preferences of this affluent audience is key for UK retailers to take advantage of the opportunity they bring. With the increasing spending power of these elite shoppers, there is a valuable opportunity for the UK retail sector to meet their needs and improve the shopping experience to attract more of this affluent consumer group.
For further insights on the global luxury market and trends, you can visit Bain Insights: Luxury or McKinsey Retail Insights.
