West End's August tax-free sales soar on tourist spend

By

Benjamin Fitzgerald

Published
Sep 22, 2016

Retailers in London’s West End continue to see a summer of spending in August with sales up 1.5% year-on-year. Tax-free sales soared 44% proving tourists are still shopping post-Brexit.

According to data from New West End Company, Bond Street enjoyed a particularly strong August, with sales surging by 35.1% from August last year. Department store spend remained strong with sales up 5.2%, while the dazzle of luxury retail proved too bright, as sales jumped 19%, with help from a 19.5% surge in jewellery.

By international market, Chinese visitor spend was up 65% on August last year, with an average spend of £1,453 per person. USA visitor sales were up 74%, followed by Hong Kong, up 72% on last August. The figures, "further highlighting the importance of international tourism post-referendum," said New West End Company.

"The West End has enjoyed a remarkable summer, with the £400 million total spend in July giving way to a 44% increase in sales across the district in August. Tourists are evidently still keen to cash in on the weak pound and thus have helped alleviate, albeit on a temporary basis, some of the shockwaves that hit the economy following the Brexit vote," said Jace Tyrrell, chief executive at New West End Company.
 
"However, the longer-term horizon once the process of leaving the EU gets underway looks less bright, as the business rates revaluation in early 2017 will hit West End retailers' profits by up to 25% in some cases. Retailers are also expected to manage an average 80% increase which will undoubtedly have significant knock-on effects. In the new post-Brexit environment, the Government should look to support, not undermine, the UK's economic wellbeing given the uncertain times ahead."