According to market analysis conducted by VAT-reclaim specialist company, Planet, the UK retail market is witnessing a significant shift in consumer behavior, with international shoppers poised to exceed local sales in the coming years. The latest data reveals that international shoppers, particularly those from non-EU countries who avail of VAT refunds, are driving a substantial portion of the retail revenue in the UK, outspending domestic consumers by nearly four times.
In 2020, international shoppers contributed almost £7 billion to the UK retail market, with some retailers reporting up to 60% of their sales coming from foreign visitors. These overseas shoppers accounted for 13.8% of sales in textile, clothing, and footwear stores, amounting to a total of approximately £6.8 billion.
With a promising 6% growth in sales to international shoppers recorded in the first 10 months of this year, retail experts anticipate a lucrative holiday season ahead. Key markets such as Chinese and American shoppers are expected to drive this surge in spending, particularly in categories like clothing, watches, jewelry, and bags.
David Perrotta, the UK Country Manager at Planet, underscores the critical role of customer experience in attracting and retaining international shoppers. He points out that as the purchasing power of these visitors continues to rise, retailers have a significant revenue opportunity by providing tailored experiences that resonate with their brands. Perrotta stresses the importance of cultural sensitivity in meeting the needs of tourists, emphasizing that aligning experiences with their preferences can lead to increased sales.
Research by Planet suggests that investing in cultural training for retail staff can yield a notable boost of 10%-20% in sales to international shoppers. As retailers gear up for the festive season, focusing on enhancing customer experience and cultural awareness will be crucial for tapping into the lucrative spending potential of international visitors.
In conclusion, the growing influence of international shoppers in the UK retail market signifies a shift in consumer dynamics, presenting both challenges and opportunities for retailers. By adapting strategies to cater to the needs and preferences of overseas visitors, retailers can maximize their sales potential and strengthen their competitive edge in the ever-evolving retail landscape.
For more information on attracting international shoppers and optimizing retail sales strategies, check out these useful links: Strategies for Capturing International Shoppers and Catering to International Shoppers: A Guide for Retailers.
