According to a recent report from Global Blue, US and Russian shoppers have played a key role in driving growth for the UK retail sector in the lead-up to Christmas. The support from international shoppers, especially those from America and Russia, has been crucial for British retailers, particularly in central London.
Global Blue, a company that assists international shoppers in reclaiming VAT, noted a significant increase in spending from luxury shoppers from both Russia and the US in the UK. American shoppers have shown a notable 25% increase in tax-free spending over the past three months, while Russian shoppers have seen a 12% rise during the same period.
Looking ahead, Global Blue predicts a further uptick in tax-free transactions from both American and Russian shoppers in the next 90 days. Americans are expected to see a 14% increase, while Russians are forecasted to experience a 7% rise in their spending.
Interestingly, the surge in spending from Russian shoppers is not limited to the UK, as they are also increasing their expenditures across Europe. On the other hand, American shoppers are benefiting from a strong US dollar and tax reductions, giving them more disposable income for luxury purchases.
However, while American and Russian shoppers are boosting the UK retail sector, Chinese shoppers appear to be cutting back on their spending. Global Blue anticipates a 7% decrease in tax-free transactions from Chinese shoppers in the upcoming months. Despite this decline, Chinese shoppers still account for a significant portion of total tax-free spending across Europe, with 28%, in comparison to the US with 8% and Russia with 7%.
In conclusion, the assistance from international shoppers, specifically those from the US and Russia, is providing much-needed support for British retailers amidst a challenging retail environment. With Christmas fast approaching, the increase in spending from these consumers is a positive sign for the UK retail sector.
For more information on international shopping trends, you can visit Global Blue’s website. Additionally, to learn more about VAT refunds for international shoppers, check out this helpful guide.
