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London’s luxury players are clamoring for the return of the duty-free scheme for foreign visitors, abolished across the Channel at the end of 2020 after Brexit. The British capital has lost its attractiveness compared to its European competitors.
The British luxury industry intends to make itself heard. Since the withdrawal of Great Britain from the European Union, and the disappearance of duty free for tourists, London is no longer the leading destination that it was. And it is losing ground to other European capitals such as Paris, Milan and Madrid.
Today, Wednesday, the government’s budget statement is presented by Jeremy Hunt, the finance minister. And for the capital’s luxury goods industry, the top priority is to restore the duty-free scheme.
Hundreds of retailers, as well as representatives of Harrods and Harvey Nichols, the capital’s flagship department stores, luxury hotels, restaurants and property developers in upmarket areas such as Knightsbridge and King’s Road, are up in arms. They have lost a major competitive advantage over European metropolises, which are always favored by such a reduction in charges. Which can lead to a differential of about 20% on the price paid by the customer.
Less attractive
If London is less attractive to foreign customers, it is also less attractive to British buyers, who prefer to shop in the European Union where they enjoy a discount.
The numbers speak for themselves when looking at the overseas consumption of major tourist clientele. According to a study by Global Blue, the leader in tax-free tourism, the spending of American visitors in the United Kingdom has certainly reached, in 2022, 101% of the pre-pandemic level of 2019. But during this time, they exploded in France (+ 256%) and Italy (+226%)!
The difference is even more worrisome among visitors from the Gulf countries, whose purchases have returned to only 65% of the 2019 level, compared to 198% in France, 166% in Italy and 158% in Spain.
The Chinese also shun London
According to another Global Blue survey of 10,000 Chinese who visited Europe in 2019, Britain, at the time their second favorite European destination after France, is also attracting them less. Today, only 42% of them plan to visit it, compared to 70% in 2019! This finding is directly linked to their strong sensitivity to price.
London is becoming less attractive for luxury lovers, but also for the brands themselves. Last year, Burberry, the British institution, had already sounded the alarm about the capital’s loss of influence. And if its compatriot, the bag specialist Mulberry, decided to close its Bond Street store last February, it is essentially linked to the disappearance of duty free. For their part, luxury brands are now opting for Paris rather than London as the location for their next stores.
Will British luxury finally make itself heard? Unfortunately, it is not certain. According to Reuters, the government argues that tourists can still benefit from duty-free purchases in the UK if they have them shipped directly to an overseas address. Furthermore, a study prior to the abolition of duty free would have indicated that the abolition of duty free would not have a significant impact on tourism. The industry and the luxury goods sector are now trying to make them understand that this prediction was not realistic…
Read also > Brexit means the end of tax-free shopping for tourists across the Channel
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London’s luxury players are clamoring for the return of the duty-free scheme for foreign visitors, abolished across the Channel at the end of 2020 after Brexit. The British capital has lost its attractiveness compared to its European competitors.
The British luxury industry intends to make itself heard. Since the withdrawal of Great Britain from the European Union, and the disappearance of duty free for tourists, London is no longer the leading destination that it was. And it is losing ground to other European capitals such as Paris, Milan and Madrid.
Today, Wednesday, the government’s budget statement is presented by Jeremy Hunt, the finance minister. And for the capital’s luxury goods industry, the top priority is to restore the duty-free scheme.
Hundreds of retailers, as well as representatives of Harrods and Harvey Nichols, the capital’s flagship department stores, luxury hotels, restaurants and property developers in upmarket areas such as Knightsbridge and King’s Road, are up in arms. They have lost a major competitive advantage over European metropolises, which are always favored by such a reduction in charges. Which can lead to a differential of about 20% on the price paid by the customer.
Less attractive
If London is less attractive to foreign customers, it is also less attractive to British buyers, who prefer to shop in the European Union where they enjoy a discount.
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London’s luxury players are clamoring for the return of the duty-free scheme for foreign visitors, abolished across the Channel at the end of 2020 after Brexit. The British capital has lost its attractiveness compared to its European competitors.
The British luxury industry intends to make itself heard. Since the withdrawal of Great Britain from the European Union, and the disappearance of duty free for tourists, London is no longer the leading destination that it was. And it is losing ground to other European capitals such as Paris, Milan and Madrid.
Today, Wednesday, the government’s budget statement is presented by Jeremy Hunt, the finance minister. And for the capital’s luxury goods industry, the top priority is to restore the duty-free scheme.
Hundreds of retailers, as well as representatives of Harrods and Harvey Nichols, the capital’s flagship department stores, luxury hotels, restaurants and property developers in upmarket areas such as Knightsbridge and King’s Road, are up in arms. They have lost a major competitive advantage over European metropolises, which are always favored by such a reduction in charges. Which can lead to a differential of about 20% on the price paid by the customer.
Less attractive
If London is less attractive to foreign customers, it is also less attractive to British buyers, who prefer to shop in the European Union where they enjoy a discount.
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