EUROPE. European tax free shopping spend fell -10% year-on-year in September, according to Global Blue.
A strong Euro and a decrease in visits to Europe from many nationalities were major factors in the decline, according to the tax free shopping specialist.
September is historically a slow month for Chinese tax free shopping spend in Europe as it falls between the peak summer season and Golden Week in October.
It should also be noted that September 2016 was a particularity strong period for European tax free shopping.
The fall in sales in September followed nine months of consecutive growth. The number of transactions also dropped -10%, although the average spend per transaction remained stable at +1%.
All nationalities posted negative growth. Sales from Chinese shoppers fell -9% during September, following a slowdown in growth during August (+1%). Global Blue said this was driven by a -13% decline in transactions as tourists – particularly those in group tours – were put off visiting Europe by an increasingly competitive Euro.
Sales from US shoppers remained “relatively flat” at -2%, making it the top performing country. Although the Dollar continued to soften against the Euro in September, the decrease in tax free shopping spend from US globe shoppers was not as significant as that of other nationalities, Global Blue reported.
Germany experienced the deepest sales decline at -27%, with performance linked to continued shifting travel patterns from Chinese visitors and the impact of reduced group travel.
The UK (-11%) and Italy (-8%) both saw a decline in overall sales, while maintaining positive year-on-year average spend growth (+3% and +2% respectively).
Spain and France experienced modest year-on-year drops in both number of transactions (-4% and -7% respectively) and average spend growth (-2% and -1%).
Despite the September decline, Global Blue noted a successful third quarter for Europe. This was particularly the case for the luxury sector as higher value transactions were less impacted.
