INTERNATIONAL. Retailers in key European markets saw sales decline this Chinese New Year compared to 2017, according to Global Blue.
The tax refund specialist said retail results were mixed across the globe. While Japan (+15%), Singapore (+9%) and Italy (+4%) experienced sales-in-store growth compared to Chinese New Year 2017, there was a decline in France (-7%), Germany (-21%), and the UK (-23%).
Photo: Global Blue
Global Blue pointed to three factors that contributed to the results: a reduction in travel by Chinese tourists to key destinations, unfavourable exchange rates and comparison to a strong 2017.
Sales-in-store figures displayed exceptional growth during Chinese New Year 2017, Global Blue said, with Chinese spend in Europe up +36%.
The organisation also noted the impact of a shift in Chinese New Year timings. With 2018’s Chinese New Year taking place mid-way through the month (16 February compared to 28 January in 2017), spending and reclaim of VAT was shifted two weeks towards March. In countries where the refund is immediate (such as Japan), a more positive and immediate result was posted.
A strong Euro created unfavourable exchange rates and all key destinations, with the exception of Italy, saw a decline in inbound tourism from China, Global Blue reported. The most notable decline took place in the UK, which saw a -24% drop. This was likely fuelled by weakening of the Yuan against the Pound and the difficult visa process for Chinese wishing to visit the UK, Global Blue said.
As a result of the decline in inbound Chinese tourists, a -10% decrease in the number of transactions across Europe was recorded. The number of transactions in Asia Pacific remained flat at +0%.
Despite this negative transaction trend, several countries across Europe saw an increase in average spend per transaction: +15% in France, +7% in Spain and +9% in Italy. Global Blue said this showed that “elite” Chinese globe shoppers “are and will continue to spend”.
