The month of August saw a remarkable upsurge in retail sales in the UK, driven significantly by Middle Eastern shoppers who were celebrating Eid al-Adha. Luxury stores in London were abuzz with visitors from various Gulf Cooperation Council (GCC) countries, with Kuwaiti shoppers in the lead with a remarkable 17% increase in spending.
According to the latest report from Planet Intelligence, the UK stood out as the only major European market with three GCC nations among the top five source markets for retail sales. Not only Kuwait, but shoppers from Saudi Arabia and the UAE also played a crucial role in boosting retail spending during the festive month.
Another contributing factor to the spike in retail sales was the higher expenditure from American visitors, showing an impressive 16% increase. This surge propelled the US to become the second-largest growing source market for retail sales in the UK, offsetting the decline in spending by Chinese tourists.
Overall, international shopper sales experienced a 5% growth, marking the seventh consecutive month of expansion. Despite a 5% decrease in Chinese tourist spending, the rise in spending from the US and GCC countries balanced out the overall retail sales figures.
Insights from Planet, the company managing tax refunds for international shoppers, shed light on consumer behavior during this period. The average transaction value in the UK soared by 9% in August, even though the number of transactions dropped by 3%. The high spending habits of GCC shoppers, who tend to invest in fewer high-value items, played a significant role in this increase.
The allure of European luxury brands among GCC shoppers also played a pivotal role in the growth of retail sales in the UK. While the 5% increase in total sales slightly lagged behind previous months, it still showcased a strong presence of international shoppers in the UK market.
For more information about international shopping trends and tax refunds in the UK, visit Planet Payment and VisitBritain.
