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London no longer a luxury shopping heaven for tourists

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London no longer a luxury shopping heaven for tourists

London is shedding out to Paris (France) and Milan (Italy) as a vacationer vacation spot for high-spending consumers over the shortage of a tax incentive, British luxury model Burberry mentioned, after its Britain-based gross sales suffered.

Overseas guests to London haven’t been in a position to declare again value-added tax on shopping because the finish of 2020 following Brexit, placing the town’s upmarket shops at a drawback to rival European cities.

In the political turmoil that has gripped Britain this 12 months, former prime minster Liz Truss’s short-lived authorities mentioned it could introduce a new VAT-free shopping scheme for worldwide guests, to spice up retail, leisure and hospitality sectors.

Weeks later, the brand new authorities underneath Prime Minister Rishi Sunak scrapped the thought in a bid to economize.

Burberry finance director Julie Brown mentioned London was now lacking out, with consumers from the United States, Middle East and Asia flocking to shopping districts of Paris and Milan, and never Bond Street and Knightsbridge within the British capital.

“We’re not seeing the same degree of tourism in Britain as we used to because we’re seeing more tourists are going into Paris, Milan,” Brown instructed reporters.

“It was a real incentive for the luxury shopper, it was a real incentive to come to Britain,” she mentioned of the tax.

Tourists in European cities can reclaim gross sales tax on some increased worth purchases at sure retailers.

Burberry’s latest outcomes confirmed that continental Europe, significantly France and Spain, outperformed the remainder of the Europe, Middle East, India and Africa area on a gross sales growth-basis, whereas British gross sales had been according to the common.

France’s LVMH, which owns Louis Vuitton and Dior, and Kering, have each outshone Burberry’s gross sales progress of late.

“If there was an alternative tax-free shopping scheme available in Britain, I think it would definitely bring tourists back to Britain,” mentioned Brown. – Reuters



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