The annual World Department Stores Forum in Tokyo on June 6 & 7th was the opportunity for Global Blue to unveil exclusive data around Department Stores global Tax Free ShoppingA number of countries offer VAT/GST refunds to international... More trends over the last 5 years.

A clearly favourable market for Tax Free ShoppingA number of countries offer VAT/GST refunds to international... More business…

Department Stores’ Tax Free ShoppingA number of countries offer VAT/GST refunds to international... More performance recorded an impressive +21% CAGR* over the past 5 years, noticeably higher than the rest of market at 9%. The APAC** region in particular comes out as the main contributor of this impressive growth at +47% CAGR, over the last 5 years, while European*** department stores performance sits at +7%.

… with several differences from one region to the other and…

A closer look at nationality-mix, shows Chinese as the clear drivers of Department Stores’ Tax Free ShoppingA number of countries offer VAT/GST refunds to international... More performance in both APAC and Europe regions. However, their Tax Free ShoppingA number of countries offer VAT/GST refunds to international... More spend represents 76% of Department Stores performance in APAC, a +31% increase in the past year, and drops to less than a third of Department Stores’ performance in Europe.

In Europe, Gulf Cooperation Council**** shoppers generate a quarter of Department Stores results. But Americans are the only nationality posting an increase of their Tax Free ShoppingA number of countries offer VAT/GST refunds to international... More spend in the past year, +5%.

…strong similarities to capitalise on

Both in Europe and APAC, Elite and Frequent shoppers’ spend combined represents more than 40% of total Tax Free ShoppingA number of countries offer VAT/GST refunds to international... More spend in Department Stores. Millennial international shoppers also contribute heavily to Department Stores’ performance. They represent more than a third of total globe shoppers visiting European department stores and half of those shopping in APAC locations. Their spending has also increased massively of the last 12 months, +33% in Europe and +49% in APAC.

Greg Gelhaus, Global Blue Head of Asia pacific, reminded the audience of Global Blue’s continuous support to offer the right solutions specific to Department stores issues:

Global Blue provides Department Stores with a range of solutions enabling them to have an impact on 3 key growth levers: increasing Economic Performance through solutions which increase sales from International Shoppers, improving the Customer Journey through personalised service offerings to International Shoppers and improving Operational Efficiency through quicker and more efficient Tax Free ShoppingA number of countries offer VAT/GST refunds to international... More processes.

*Compound Annual Growth Rate
**Japan and Singapore
***France and Italy
****Kuwait, Qatar, Saudi Arabia, United Arab Emirates