Global Blue, an international shopping tax refund service company, released its report on duty-free shopping for July 2024: In July, global in-store duty-free shopping revenue surged by 25%. This follows a 41% increase in global in-store duty-free shopping revenue in the second quarter (April to June 2024), indicating a slowdown in growth compared to the previous quarter.
Duty-Free Shopping in Europe – July Overview
In the European continent, in-store duty-free shopping revenue growth slowed to 12% year-over-year in July. Global Blue attributed this growth primarily to a 10% increase in the number of shoppers and a 2% rise in average spending per shopper. However, this growth rate represents a deceleration compared to the 19% growth in the second quarter, largely due to a 2% decline in France (following a 10% increase in the second quarter). As Global Blue predicted, preparations and restrictions ahead of the Paris Olympics negatively impacted retail activity in France.
From the perspective of source markets, consumers from all countries/regions showed strong growth in in-store spending. Specifically, duty-free spending by Chinese Mainland consumers increased by 33% year-over-year in July, slightly accelerating from 31% in the second quarter. Duty-free spending by U.S. consumers rose by 15% year-over-year in July, with the number of consumers up by 20%. Additionally, consumer numbers from Gulf Cooperation Council (GCC) countries (Kuwait, Qatar, Saudi Arabia, United Arab Emirates, Bahrain, and Oman) grew by 7% year-over-year.
From the perspective of destination markets, Global Blue noted that most destinations showed strong duty-free spending performance in July, with Spain’s duty-free revenue up 25%, Italy up 19%, and Germany up 10%. However, duty-free revenue in France, the host country of the Paris Olympics, fell by 2%.
Duty-Free Shopping in Asia-Pacific – July Overview
In the Asia-Pacific region, in-store sales growth continues to maintain a high level. In July, the growth rate reached 64%, with the number of shoppers increasing by 49% year-on-year and the average spending per shopper up by 10% year-on-year. However, compared to the 109% growth rate in the second quarter, July’s growth rate has slowed down, partly due to the strong comparison base from last year (July 2023) and the recent strengthening of the yen against all major currencies, especially the renminbi.
From the perspective of origin markets, in-store sales growth from consumers of all countries and regions in the Asia-Pacific region remained strong. Notably, duty-free spending by consumers from the Chinese Mainland led the way in July, with a year-on-year increase of 97%, driven by a 107% increase in the number of shoppers from the Chinese Mainland. Additionally, duty-free spending by consumers from Northeast Asia increased by 76% year-on-year in July, while duty-free spending by consumers from Hong Kong and Taiwan increased by 60% year-on-year.
Looking at destination markets, most destinations in the Asia-Pacific region performed well in July. Japan’s duty-free revenue grew by 103%, South Korea’s by 44%, but Singapore’s duty-free revenue declined by 9%.
| Source: Global Blue Report, Moodiedavittreport.com
| Image Credit: Global Blue official website
| Editor: Liu Jun
