EUROPE/ASIA. Tax free shopping specialist Global Blue has reported a double-digit rise in July sales in Europe and Asia.
Asia’s Tax Free Shopping (TFS) performance hit a 24-month high, with sales-in-store growing +30% year-on-year. Transactions across the region increased by +8% despite continued pressure on Korean’s TFS industry, and average spend increased by +21%.
Global Blue said: “July performance was robust across all key ‘Globe Shopper’ markets. While Chinese travellers remain the main driver of Asian growth, diverted holiday travel from Korea helped to grow average spend faster than transactions across the region.”
Japan posted robust growth of +68%, driven by increased transactions and higher spend as the Yen continues to soften. Singapore recorded its best performance of 2017, with year-on-year sales up by +14%. Singapore saw further growth in the watches and jewellery category during July, which now represents 36% of calendar year-to-date TFS sales, overtaking fashion and accessories (21%) as the largest spend category.
Chinese calendar year-to-date sales grew by +19% across the region, driven by a healthy mix of transaction growth and an increase in average spend as wealthier visitors drive sales, said Global Blue.
Asian TFS sales from Korean travellers were bolstered by domestic safety concerns, causing many to extend stays in nearby TFS destinations. Calendar year-to-date sales were up by +40% during July.
Europe performance
In Europe, TFS spend grew by +13% year-on-year as summer tourist traffic transactions across the region increased by +12%. France, Spain and the UK all posted a positive July, with sales up +6%, +27% and +23% year-on-year, respectively. German sales in-store were down -7% year-on-year, partly due to shifting travel patterns among travellers from China and Hong Kong.
Global Blue noted: “The summer months generally see a TFS spending peak for leading nationalities and July saw large sales-in-store growth for Chinese and US shoppers, with both nations deep into their traditional holiday periods.”
Chinese spend grew by +20% year-to-date while American spend was up +23%. Spend from Russian visitors saw a +32% increase, driven by a +37% increase in transactions.
