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RUSSIA. Russian spend on tax free shopping fell by -33% in the final quarter of 2014, compared to the same period the previous year. That’s according to tax refund company Global Blue.
A key factor in this drop is the much reduced value of the Rouble, which has fallen by -40-50% in comparison to most currencies. The collapse of oil prices, an industry Russia heavily depends upon, has also added to the change.
Relying largely on Russian cross-border shoppers, Finland saw a sharp -49% year-on-year drop in the total value of spending in the fourth quarter of last year. Italy (-1%), Germany (-1%) and Singapore (-4%) also saw a decrease during the same period as a result of the fall in spending by Russians.
While Russian tax free spending suffered, Chinese travellers accounted for more than a third of overall tax free shopping. Chinese spend rose by +33% year-on-year, only cementing the increasing importance of Chinese travellers for retailers.
Other growth nations for tax free spend in the period included Taiwan (+43%), Hong Kong (+57%), Saudi Arabia (+36%) and South Korea (+38%), which all saw significant increases.
