Global Tax free spend remain negative in April

London - Global Tax Free shopping spend (TFS) remained negative in April, as both Asia and Europe reflect double digit slowdown, highlighting the pull of the luxury slow down according to the latest data from tax free specialist Global Blue.

Regional sales dropped both in Europe, down 16 percent year on year and Asia, down 10 percent year on year, during the month of April, drawing a stark comparison to the same period last year, which saw a 40 percent increase in Europe and a 92 percent increase in Asia year on year.

Global Blue believes that although tax free sales in Asia have followed Europe’s decline, TFS remains a “cyclical business” which is likely to improve in H2 after a challenging H1. Asia is showing some resilience for tax free shopping, as the number of transactions has increased 15 percent year on year across the region.

However, Europe’s “deepening decline” appear to have taken hold of the region, with Europe reporting a 16 percent year on year decline for April, after a 22 percent drop in March. Both France (down 23 percent) and Germany (down 20 percent) where the worst affected countries, whilst the UK posted only a 1 percent decline in TFS for the month of April.

Europe remains the largest attraction for global shoppers, but continues to be affect by the terror attacks which took place in Paris and Brussels, which has affect visitor numbers to the region as well as the luxury slowdown. "Amid slowing demand for luxury goods and changing consumer shopping behaviour, the luxury goods industry across Europe, the Americas and APAC has recognised that the current climate is likely to remain challenging for the remainder of 2016," said Global Blue in a statement.

This prediction is reflected in the most recent trading statement from luxury conglomerate Richemont and fashion house Burberry, which both reported declining full year sales to the year ended in March, 2016 in May.

Photo: Courtesy of Global Blue