Luxury retailers in the UK are currently experiencing a boom in sales, particularly from American tourists, thanks to the thriving American economy. In May alone, UK retail sales to US visitors saw a remarkable 27% increase compared to the previous year, according to VAT refunds specialist Planet. This surge in sales coincides with a significant rise in American consumer confidence, which has reached a six-month high.
What sets this growth apart is that this 27% surge in sales to American tourists marked the ninth consecutive month of double-digit sales growth. Furthermore, the average spend by US shoppers in the UK saw a notable increase, jumping to €474 in May from €364 a year ago. The spike in spending can largely be attributed to currency fluctuations, with the US dollar strengthening against the pound and euro.
Moreover, overall UK sales to international shoppers also saw a 3% increase in May, with a noteworthy 12% uptick in average purchase value. This steady growth in sales to international shoppers has been a consistent trend over the past five months, showcasing positive momentum. The average transaction value (ATV) of the UK’s top-five source markets reached a 29-month high in May, underscoring the growing significance of international shoppers to UK retailers.
It is evident that international visitors are not only drawn to the cultural and historical offerings of the UK but are also keen on indulging in shopping, especially for luxury items. High-end stores are reaping the benefits of this trend, evident in the substantial increase in average transaction value. This trend is likely to continue in the coming months, with events such as Eid al-Adha and the Cricket World Cup expected to draw shoppers from GCC nations and India to Europe and the UK.
David Perrotta, UK Country Manager at Planet, anticipates the growth in sales to international shoppers to persist during the upcoming summer holiday season. With international visitors displaying a strong inclination towards purchasing luxury goods, UK retailers are poised for a strong finish to the second quarter.
For more information on VAT refunds for international shoppers in the UK, click here.
To discover the luxury shopping experience in the UK, visit Visit Britain.
