Global Blue revealed its latest data about 2018 European A number of countries offer VAT/GST refunds to international... More progression during the Annual Altagamma Luxury Observatory Conference in Milan on November 15th.
Tax Free spend dynamic across Europe
The Annual Altagamma Luxury Observatory Conference was the occasion for Global Blue to present A number of countries offer VAT/GST refunds to international... More performance in Europe. From 2011 to 2018, A number of countries offer VAT/GST refunds to international... More in Europe has been one of the key drivers of growth for the luxury industry, with an average growth of 7%.
From January to September 2018, Tax Free spend dynamic slowed down on the back of reduced transaction numbers in Europe (-8%) and Sales in Store decrease (-6%) compared to the same period in 2017. Macro-economic factors contribute to this A number of countries offer VAT/GST refunds to international... More activity decrease, including unfavourable foreign exchange rates, with a strong euro compared to the US dollar and Chinese RMB. But despite a lower number of transactions, the Refers to average value of a transaction (usually applying t... More per transaction has increased by +2% compared to the same period in 2017.
The “French exception” – with the Millennials as one of the key growth engine
Several major European countries report the same Sales in Store decrease from January to September 2018 compared to the same period the year before. Indeed, Italy, the United Kingdom and Spain report a -8% decrease in their Tax Free spend.
Yet, France is the only European country in which showing a positive progression at +1% of its Tax Free spend over the first nine months of 2018. This progression can be explained by a larger number of Elite and Frequent shoppers prioritising a visit to France.
Chinese globe shoppers remain the first nationality
Upon closer look at nationalities over the first nine months of 2018, Global blue showed contrasting results. Although Chinese globe shoppers’ spend slowed down by -4% compared to 2017, they remained of the best performing nationality for the A number of countries offer VAT/GST refunds to international... More market, representing 29% of total Tax Free spend in Europe. In parallel, Europe continues to be an attractive shopping destination for Gulf Countries nationalities who represent 11% of total Tax Free spend, before Russians at 8%.