For the first time, Russians are no longer among the top 10 biggest tax free shopping nations in the UK, according to October sales data from Global Blue.

 

The tax refund specialist says that “political turmoil in Russia has continued to affect their spend in the UK” but it has not written the Russians off completely. “As the Rouble starts to see strength there are positive signs for recovery next year,” it says.

 

In the six months to today the Rouble has seen a -20% devaluation against Sterling – and a similar performance against the Euro (-18.7%), but it has been stable in November. In this scenario, and with Russia still in an economic quagmire – and wounded by Western sanctions – it may be some while before Russian spending returns to its glory days.

 

The new Global Blue data follow September’s figures which showed a catastrophic -31% fall in Russian spending.

 

TOP 10 WINNERS & LOSERS

Overall the Global Blue Tax Free Spend Index revealed that the year-on-year change in international spend in the UK matched September, falling by -2% overall.

 

Chinese and Middle Eastern spend remained strong overall, although growth from China was very slow at +2% (see table and click to enlarge) even though it still represent the majority – by far – of UK tax free spend with a 26% share.

 

In October, the biggest growth spurts came from Saudi Arabia and Qatar (see bar chart above and click to enlarge) with significant double-digit growth of +67% YOY and +23% YOY respectively for the month. And despite unrest in Hong Kong following the riots, spending by shoppers from Hong Kong soared, up +27%.

 

The biggest losers in October were the UAE from where spending fell by -24%; Thailand, down -21% and the US, dropping -16%.

 

Note: Global Blue data are based on tax refund figures from foreign shoppers applying for tax refunds who have primarily shopped in the domestic market.