The final quarter of 2014 may witness the boost it needs this
Christmas, after a slower year of international spend in the UK,
thanks to a rise in visitor numbers.
According to retail specialist, Global Blue and VisitBritain,
international visitors figures have seen the largest growth during the
fourth quarter of this year, up 13 percent over the last 5 years, and
soaring growth in spend of 16 percent year-on-year during the holiday
period. “Christmas is one of the key periods for international
shoppers coming to the UK,” commented Gordon Clark, UK Country Manager
of Global Blue. “Last year saw strong sales across the board, with all
nations reporting significant growth.”
This year’s January to October figures show China and Middle Eastern
nations holding firm as the highest spenders, with China representing
25 percent of total spend, followed by Kuwait, representing 8 percent
and Saudi Arabia, representing 7 percent. As the average transaction
value to date for Chinese shoppers is 740 pounds, and goes up to 1,473
pounds for Middle Eastern shoppers, Global Blue foresees these nations
to boost international spend for the year as key spenders this
Christmas.
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“Christmas is one of the key periods for international shoppers
coming to the UK”
Although this year has seen a slight dip in international spend in the
UK due to economic and political issues in key markets as well as
weakening currencies from South East Asian countries, this Christmas
spend is predicted to increase. Last year Christmas international
spend from Chinese shoppers grew 26 percent, and Kuwait and United
Arab Emirates spend increases 30 percent and 44 percent respectively,
according to VisitBritain.
“Political turmoil and weakened currencies have left shoppers from
some nations, particularly Thailand and Russia, less likely to spend
in the UK this year, so retailers are focusing their services on
targeting the traditional Chinese and Middle Eastern markets who have
continued to contribute most significantly to sales,” continued Clark.
“Tax free shopping, more than ever, has become an integral part of the
Christmas strategy for retailers.”
“Shopping is a lucrative business. High spending Qataris contributed
an astonishing 5,077 pounds per visit across Britain during the same
period last year, that’s eight times the market average, so we
continually look to tailor our overseas marketing to bring us the
highest returns from such regions,” added Patricia Yates, Director of
Strategy and Communications at VisitBritain. “Whatever the price range
or product, shopping allows the economic benefits of tourism to be
spread across the whole country.”
The upcoming holiday season is a key trading period for UK retailers,
and even though not all global shoppers celebrate Christmas, many
still come for sale days, such as Boxing Day, to acquire luxury
accessories and fashion items. Global Blue expects that retailers who
offer tax free shopping, wider currency choices and bespoke services
will attract the most international shoppers.
But data also shows that more and more international shoppers are
traveling outside of London for their holiday shopping. Cities such as
Manchester and Liverpool are becoming more established as major
shopping destinations, due to the increasing brand offering they have
to offer. “London is an international Christmas shopping destination,
but our numbers now show that major cities such as Liverpool,
Manchester and Edinburgh are starting to emerge as strong
alternatives,” said Yates.