By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Marketing In Asia
  • Marketing
    • Viral
    • Expert Opinions
    • News & Trends
    • Research
    • Market Podcasts
    • Market Videos
    Marketing
    This category deals with best news and updates on marketing and branding news and events.
    Show More
    Top News
    Sangeeta Mudnal
    How conversational commerce benefits marketers
    4 weeks ago
    Andrew Monu, VP of Marketing, LinkedIn
    Marketing in Asia Presents an Exclusive Interview with Andrew Monu, VP of Marketing, LinkedIn
    4 weeks ago
    Ankita Thakur
    Marketing in Asia Presents an Exclusive Interview with Ankita Thakur, Group Head of Marketing, MoneyHero Group
    1 month ago
    Latest News
    Marketing in Asia Presents an Exclusive Interview with Cris Tan, Associate Director, Publisher Development (SEA)
    2 weeks ago
    Time for ASEAN to Rethink a Single Currency Amid Global Trade Tensions
    2 weeks ago
    Marketing in Asia Presents an Exclusive Interview with Carine Chin, Head of Corporate Marketing, Etiqa Insurance Singapore
    2 weeks ago
    Marketing in Asia Presents an Exclusive Interview with April Tayson, Regional VP INSEAU at Adjust
    3 weeks ago
  • Startup
    • News from Startup world
    • Startup Stories
    • Trends and Opinions
    • Startup Podcasts
    • Startup Videos
    Startup
    News and articles from startup and venture investment world
    Show More
    Top News
    Japan’s Evolving Booze Culture: A Market in Transformation
    Japan’s Evolving Booze Culture: A Market in Transformation
    8 months ago
    text
    Safe Space™ announces partnership with National Healthcare Group as it continues to boost employee support and wellbeing
    9 months ago
    Sakshi Kalani Founder & CEO of Savy Click and Jaipur Unfolded
    AI-Powered Analytics: Sakshi Kalani on Influencer Marketing in 2025
    9 months ago
    Latest News
    Byron J. Fernandez: Minimize the stress of business crises with strong CX
    6 months ago
    Vedant Mahajan Acquires Stake in Flite: Transforming Event Technology with Innovation
    6 months ago
    Navigating the Digital Economy and Tax Challenges for SMEs
    6 months ago
    sehatUP Launches India’s First Integrated Digital Health Clinic, Pioneering Holistic Healthcare
    8 months ago
  • Business
    • Feature Stories
    • News
    • Business Podcasts
    • Business Videos
    Business
    News and press releases from business world of Asia
    Show More
    Top News
    Andrew Monu, VP of Marketing, LinkedIn
    Marketing in Asia Presents an Exclusive Interview with Andrew Monu, VP of Marketing, LinkedIn
    4 weeks ago
    Ankita Thakur
    Marketing in Asia Presents an Exclusive Interview with Ankita Thakur, Group Head of Marketing, MoneyHero Group
    1 month ago
    Mary Reschar, Head of Product Marketing, Fluent Commerce
    How retailers can prepare for the rise of Gen Zalpha
    1 month ago
    Latest News
    Marketing in Asia Presents an Exclusive Interview with Cris Tan, Associate Director, Publisher Development (SEA)
    2 weeks ago
    Time for ASEAN to Rethink a Single Currency Amid Global Trade Tensions
    2 weeks ago
    Marketing in Asia Presents an Exclusive Interview with Carine Chin, Head of Corporate Marketing, Etiqa Insurance Singapore
    2 weeks ago
    Marketing in Asia Presents an Exclusive Interview with April Tayson, Regional VP INSEAU at Adjust
    3 weeks ago
  • Society
    • Inspiration
    • Destinations & Travel
    • Food & Gourmet
    • People
    • Young Voices
    • Society Videos
    • Society Podcasts
    Society
    News and articles from and for societies around us
    Show More
    Top News
    Smashers Sports Acquires Delhi Franchise of WPBL: A Game-Changer in India’s Sports Entertainment
    Smashers Sports Acquires Delhi Franchise of WPBL: A Game-Changer in India’s Sports Entertainment
    6 months ago
    Resorts World Cruises Sets Sail from Dubai with New Luxury Gulf Voyages
    Resorts World Cruises Sets Sail from Dubai with New Luxury Gulf Voyages
    7 months ago
    Australia luxury property
    Australia’s Luxury Real Estate Market Soars as Affluent Buyers Seek Waterfront Dreams
    7 months ago
    Latest News
    From Taboo to Triumph: How Malaysians Are Transforming Their Intimate Health Journey
    3 months ago
    Top 5 Misconceptions About Antibiotics Malaysians Need to Stop Believing
    3 months ago
    Eagle Eye Reveals Impact of Loyalty Programs on APAC Retailers
    3 months ago
    Elevate Your Haircare in 2025 with Jung Beauty’s Luxurious Camellia Edition Treatment
    5 months ago
  • Press Release
  • Awards
    • MIA Impact Circle Stellar CxO 2023 Malaysia
    • MIA Impact Circle Stellar CxO 2023 India
    • MIA Impact Circle Stellar CxO 2023 Philippines
    • Australian Women in Business Excellence Awards
    • MIA Impact Circle Stellar CxO 2024 Singapore
    • Mia Impact Circle Stellar Cxo 2024 Hongkong Award 
    • Mia Impact Circle Stellar Cxo 2024 Indonesia Award 
Search
Technology
  • Hot
  • Trending
  • Editor’s Choice
  • NSFW
  • Reactions
  • Authors
  • Viral on Internet
Other Pages
  • My Bookmarks
  • Customize Interests
  • About Marketing In Asia
  • Business Register & Login
  • Web Stories
  • Videos
  • Disclaimer
  • Terms of Service
  • Privacy Policy
© 2024 Marketing In Asia Sdn Bhd. All Rights Reserved.
Reading: Why London’s Luxury Retail Industry is Worried About its Future as a Shopping Mecca
Share
Sign In
Notification Show More
Latest News
Kissflow
Kissflow wins “Best Digital Transformation Solution” at Future Digitech Summit 2025
Press Release
TikTok
TikTok World ’25: Driving Full-Funnel Growth with AI, Creativity, and Community
Press Release
Flick TV
Micro-drama OTT platform Flick TV raises $2.3M in seed funding led by Stellaris Venture Partners
Press Release
Teaser
MANORS and Reebok announce collaboration with provocative campaign by Stink Studios and Director Dan French
Press Release
Trained on Greatness
BingX and Chelsea FC Launch ‘Trained on Greatness’ – A Bold Creative Platform from AKQA Australia
Press Release
Aa
Marketing In Asia
Aa
  • Hot
  • Trending
  • Editor’s Choice
  • NSFW
  • Reactions
  • Authors
  • Viral on Internet
  • My Bookmarks
  • Customize Interests
  • About Marketing In Asia
  • Business Register & Login
  • Startup Register & Login
Search
  • Marketing
    • Viral
    • Expert Opinions
    • News & Trends
    • Research
    • Market Podcasts
    • Market Videos
  • Startup
    • News from Startup world
    • Startup Stories
    • Trends and Opinions
    • Startup Podcasts
    • Startup Videos
  • Business
    • Feature Stories
    • News
    • Business Podcasts
    • Business Videos
  • Society
    • Inspiration
    • Destinations & Travel
    • Food & Gourmet
    • People
    • Young Voices
    • Society Videos
    • Society Podcasts
  • Press Release
  • Awards
    • MIA Impact Circle Stellar CxO 2023 Malaysia
    • MIA Impact Circle Stellar CxO 2023 India
    • MIA Impact Circle Stellar CxO 2023 Philippines
    • Australian Women in Business Excellence Awards
    • MIA Impact Circle Stellar CxO 2024 Singapore
    • Mia Impact Circle Stellar Cxo 2024 Hongkong Award 
    • Mia Impact Circle Stellar Cxo 2024 Indonesia Award 
Have an existing account? Sign In
Follow US
© 2023 Marketing In Asia Sdn Bhd. All Rights Reserved.
Marketing In Asia > Blog > Society > Destinations & Travel > Why London’s Luxury Retail Industry is Worried About its Future as a Shopping Mecca
BusinessDestinations & TravelFashion

Why London’s Luxury Retail Industry is Worried About its Future as a Shopping Mecca

profile
Last updated: 2023/03/21 at 5:49 PM
Eshita
Share
5 Min Read
Luxury Retail
SHARE

London’s luxury retail industry is raising worries about the city’s decreasing allure as a shopping spot. Tourists from the US, China, and the Gulf are leaning more towards Paris and Milan as they offer tax cuts which lower the expense of their purchases. The industry is requesting the government to restore sales-tax-free shopping for international guests following the UK’s departure from the European Union in 2020. This could be a huge benefit for businesses and shoppers alike. Notable companies like Harrods, Harvey Nichols, Cadogan, and The Lanesborough Hotel have joined forces with hundreds of other retailers to encourage Jeremy Hunt, the finance minister, to transform the rules.

Global Blue’s data shows US visitors to the UK have restored their spending to what it was pre-Covid, which is great news when you consider the major contribution they make to the economy. Despite this, British tourists have substantially increased their spending in France, Spain, and Italy. To make matters worse, British customers are now spending more in the EU where they can obtain refunds on the Value Added Tax charged on goods.

Luxury retailers are opting to invest more in their Paris stores located near the iconic Champs Elysees rather than those in London. Industry experts believe that the tax advantage should be reinstated to make sure Britain remains an attractive place for these brands. Without an incentive, the tourism sector – encompassing hotels, restaurants, taxis, museums & theatres – will be adversely impacted. This can have further repercussions for the entire tourism industry.

Also Read: Changi Airport’s Retail Scene Sees Steady Recovery Post-Pandemic

Last year, Burberry, the biggest British luxury retail brand, pointed out that London was falling behind other European cities due to VAT regulations. Last month, Mulberry announced the closure of its Bond Street store, attributing it to the termination of VAT-free shopping which had a notable influence. Sarah Jaconelli, director of New West End Company, voiced her concerns regarding the unintended effects of Britain leaving EU. She pointed out that tourists may opt to visit Europe instead due to the 20% discount they can avail there. It’s clear that this move in itself has proved to be a disadvantage for Britain.

According to Global Blue data, American visitors spending in the UK was consistent with 2019 numbers by 2022. Meanwhile, France and Italy surpassed those numbers significantly with a stunning 256% & 226% respectively. Visiting tourists from the Gulf region experienced a dip in UK sales of 35 percent relative to pre-Covid levels. Conversely, France, Italy and Spain made remarkable recoveries with their sales figures reaching 198%, 166% and 158% respectively compared to 2019.

According to the Global Blue survey of 10,000 Chinese tourists who visited Europe in 2019, Britain’s appeal has decreased significantly. Despite being the 2nd most popular tourist location in Europe among larger countries in 2019, only 42% of people had plans to travel to Britain, a drop from 70% from the previous year. This has resulted in Spain, Italy, and Germany becoming more desirable spots for tourists.

Luxury retail outlets in London have noticed a drop in tourism due to the fact that US, Chinese, and Gulf tourists prefer Paris & Milan as they offer better tax incentives. This has caused London to lose its appeal as a desirable shopping destination. The government has been called upon to restore tax-free shopping for foreign shoppers. According to data, the number of American tourists visiting the UK is back to pre-pandemic levels, lagging behind France and Italy which have achieved twice those numbers. Recent trends in the UK have shown an increased spending on goods from the EU. This is partially due to a tax reimbursement that shoppers can get when purchasing items. However, luxury brands have decided to invest more in their French stores than London, and Britain can remain competitive if they reinstate this tax incentive. According to Global Blue’s survey of 10,000 Chinese tourists who visited Europe in 2019, Britain seemed to be losing its appeal.

You Might Also Like

Marketing in Asia Presents an Exclusive Interview with Cris Tan, Associate Director, Publisher Development (SEA)

Time for ASEAN to Rethink a Single Currency Amid Global Trade Tensions

Marketing in Asia Presents an Exclusive Interview with Carine Chin, Head of Corporate Marketing, Etiqa Insurance Singapore

Marketing in Asia Presents an Exclusive Interview with April Tayson, Regional VP INSEAU at Adjust

Marketing in Asia Presents an Exclusive Interview with Andrew Monu, VP of Marketing, LinkedIn

MIA
Get Latest Job Updates on Whatsapp and Telegram
SCIKEY Logo
Whatsapp
Telegram
TAGGED: Harrods, London, luxury retail industry, Mulberry, shopping destination, tax incentives, tourist trends, VAT

Sign Up For MIA Newsletter

Be keep up! Get the latest updates about the Marketing world delivered straight to your inbox.

    By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
    Eshita Chaurasia March 21, 2023 March 21, 2023
    Share This Article
    Facebook Twitter LinkedIn Email Copy Link Print
    Share
    What do you think?
    Love0
    Happy0
    Joy0
    Surprise1
    Sad1
    Angry0
    Cry0
    profile
    By Eshita Chaurasia
    With a Post Graduate degree from NIFT and 9 years of experience, I am a skilled professional in Fashion Marketing, Brand Management, and Fashion/Retail Merchandising.
    Previous Article Pearson India Launches Two New Digital Ad Campaigns with Actor Vicky Kaushal
    Next Article Understanding Amazon’s Latest Job Cuts: What It Means for the Tech Sector
    Leave a comment Leave a comment

    Leave a Reply Cancel reply

    You must be logged in to post a comment.

    9.5k Followers Follow
    3.4k Followers Like
    1.1k Followers Follow
    214 Followers Follow
    208 Subscribers Subscribe

    Latest News

    Kissflow
    Kissflow wins “Best Digital Transformation Solution” at Future Digitech Summit 2025
    Press Release 2 days ago
    TikTok
    TikTok World ’25: Driving Full-Funnel Growth with AI, Creativity, and Community
    Press Release 2 days ago
    Flick TV
    Micro-drama OTT platform Flick TV raises $2.3M in seed funding led by Stellaris Venture Partners
    Press Release 2 days ago
    Teaser
    MANORS and Reebok announce collaboration with provocative campaign by Stink Studios and Director Dan French
    Press Release 2 days ago

    PropertyGuru

    property guru

    You Might also Like

    Cris Tan
    AdvertisingInterviewsMarketing

    Marketing in Asia Presents an Exclusive Interview with Cris Tan, Associate Director, Publisher Development (SEA)

    2 weeks ago
    Asean countries
    EconomicsOpinion

    Time for ASEAN to Rethink a Single Currency Amid Global Trade Tensions

    2 weeks ago
    Carine Chin
    BusinessInterviewsMarketing

    Marketing in Asia Presents an Exclusive Interview with Carine Chin, Head of Corporate Marketing, Etiqa Insurance Singapore

    2 weeks ago
    April Tayson, Regional VP INSEAU at Adjust
    BusinessInterviewsMarketing

    Marketing in Asia Presents an Exclusive Interview with April Tayson, Regional VP INSEAU at Adjust

    3 weeks ago
    //

    Get Asia to Notice You

    Quick Link

    • Contact
    • RSS Terms of Service
    • Policies & Standards
    • About Us
    • FAQ
    • Disclaimer
    • Terms Of Service
    • Privacy Policy

    Top Categories

    • Marketing
    • Startup
    • Feature Stories
    • News
    • People
    • Inspiration

    Sign Up for Our Newsletter

    Subscribe to our newsletter to get our newest articles instantly!

      Marketing In AsiaMarketing In Asia
      Follow US
      © 2024 Marketing In Asia. All Rights Reserved.
      • Disclaimer
      • Terms of Service
      • Privacy Policy