Dynamic international tax free shopping spends are being reported by the London Luxury Quarter which comprises more than 60 high-end luxury branded retailers, 18 five-star hotels and 23 Michelin star restaurants in the Mayfair, St James’s and Piccadilly areas.

 

The luxury organisation has reported Q1 January to March sales growth of +39%, with Russian visitors’ tax free shopping spend in March up by +88%, whilst American spending grew by +116% year on year.

 

The organisation commented: “The figures for Russia are particularly notable given recent economic pressures and rising political tension at home that has seen long-term decline in Russian luxury spend.

 

“March recorded the highest growth in international tax free spend by Russian visitors in London Luxury Quarter in more than two years. The Russian economy, slowly emerging out of a recession, is believed to have positively influenced Russian consumers’ spending habits, historically known for their keen investment in luxury goods.

 

RUSSIAN EVENTS IN LONDON ARE A MAJOR DRAW

“The centenary of the Russian Revolution has also revived strong interest in Russian culture, prompting art exhibitions and events across London, which has encouraged Russian travellers’ motivation to visit.”

 

Meanwhile, American visitors account for 11% of London Luxury Quarter’s international tax free shopping market after the market leading Chinese, whose visitor spending continues to dominate with a market share at 23%.

 

Chinese visitors’ international tax free spend also continued to increase for the year to date at +68%, as well as Saudi Arabia, the UAE and Hong Kong, which each saw growth of +45%, 24% and +80% respectively. Together with the US, these nations are the top five markets in London Luxury Quarter for international tax free spend for the year to date.

 

The London Luxury Quarter says that US visitors have steadily increased their share over the past year, with Americans accounting for a 7% share of the total in January 2016. However this has since grown to 12% share in March 2017, with the strong American economy, supported by the high levels of consumer confidence encouraging more international travel to the UK in particular.

 

US IN TOP THREE VISITOR RANKING

As such, the US is now one of the top three visiting markets to the UK alongside France and Germany, according to VisitBritain. The London Luxury Quarter adds that US visitors’ enthusiasm for British culture has translated into strong spending on British luxury brands, which they hold in high regard.

 

Commenting on these positive trends, Mark Henderson, the Chairman of London Luxury Quarter said: “London’s long standing luxury appeal has continued to attract and grow tourist markets, like Russia and America, whose visiting nationals have a strong appreciation for our culture, quality goods and experiences.

 

“It is particularly encouraging to see Russian visitors – historically a strong market for London Luxury Quarter – return to investing in British luxury goods after a long period of decline.

 

HEALTHY DIVERSITY OF NATIONALITIES

“The steady growth of US spend and the bounce back from Russian visitors brings diversity to London Luxury Quarter, which has been dominated by Chinese and Middle Eastern visitors for some time. Brands welcome the mix, as it promotes their names in visitors’ home markets and supports their global success, rather than relying on a single market.”

 

Helen Brocklebank, Chief Executive of Walpole says: “London is unquestionably the world’s leading luxury destination; international consumers are drawn to its unique blend of heritage, rich culture, and its peerless retail experience with a high concentration of British luxury brands.

 

“Post-Brexit currency fluctuations have given overseas visitors an extra reason to visit right now, but London has an enduring allure for overseas visitors, including those from America and Russia.

 

“Let’s not forget that, whilst many of Britain’s luxury brands are London-based, their manufacturing hubs are located across the UK, so a strong London market has a positive economic impact countywide.”