International spend in the UK to boom through to Christmas

The final quarter of 2014 may witness the boost it needs this Christmas, after a slower year of international spend in the UK, thanks to a rise in visitor numbers.

According to retail specialist, Global Blue and VisitBritain, international visitors figures have seen the largest growth during the fourth quarter of this year, up 13 percent over the last 5 years, and soaring growth in spend of 16 percent year-on-year during the holiday period. “Christmas is one of the key periods for international shoppers coming to the UK,” commented Gordon Clark, UK Country Manager of Global Blue. “Last year saw strong sales across the board, with all nations reporting significant growth."

This year's January to October figures show China and Middle Eastern nations holding firm as the highest spenders, with China representing 25 percent of total spend, followed by Kuwait, representing 8 percent and Saudi Arabia, representing 7 percent. As the average transaction value to date for Chinese shoppers is 740 pounds, and goes up to 1,473 pounds for Middle Eastern shoppers, Global Blue foresees these nations to boost international spend for the year as key spenders this Christmas.

"Christmas is one of the key periods for international shoppers coming to the UK"

Although this year has seen a slight dip in international spend in the UK due to economic and political issues in key markets as well as weakening currencies from South East Asian countries, this Christmas spend is predicted to increase. Last year Christmas international spend from Chinese shoppers grew 26 percent, and Kuwait and United Arab Emirates spend increases 30 percent and 44 percent respectively, according to VisitBritain.

“Political turmoil and weakened currencies have left shoppers from some nations, particularly Thailand and Russia, less likely to spend in the UK this year, so retailers are focusing their services on targeting the traditional Chinese and Middle Eastern markets who have continued to contribute most significantly to sales,” continued Clark. “Tax free shopping, more than ever, has become an integral part of the Christmas strategy for retailers.”

“Shopping is a lucrative business. High spending Qataris contributed an astonishing 5,077 pounds per visit across Britain during the same period last year, that’s eight times the market average, so we continually look to tailor our overseas marketing to bring us the highest returns from such regions,” added Patricia Yates, Director of Strategy and Communications at VisitBritain. “Whatever the price range or product, shopping allows the economic benefits of tourism to be spread across the whole country.”

The upcoming holiday season is a key trading period for UK retailers, and even though not all global shoppers celebrate Christmas, many still come for sale days, such as Boxing Day, to acquire luxury accessories and fashion items. Global Blue expects that retailers who offer tax free shopping, wider currency choices and bespoke services will attract the most international shoppers.

But data also shows that more and more international shoppers are traveling outside of London for their holiday shopping. Cities such as Manchester and Liverpool are becoming more established as major shopping destinations, due to the increasing brand offering they have to offer. “London is an international Christmas shopping destination, but our numbers now show that major cities such as Liverpool, Manchester and Edinburgh are starting to emerge as strong alternatives,” said Yates.