At a time when American tourists are returning to continental Europe, the abolition of the V.A.T. refund (effective from 2021) is holding back sales for British retailers.
In less than a fortnight, two iconic brands – Burberry and Mulberry England – have warned of the toll of the end of tax-free shopping for international tourists, introduced in the U.K. in January 2021.
According to Burberry (turnover of €1.52 billion in the six months to the end of September 2022), sales by tourists increased by 40% in the E.M.E.A. region, but tourists preferred to shop in continental Europe.
For Mulberry, the brand’s U.K. sales have fallen by 10% in the last 6 months, while...
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