Global Blue Releases the Monthly Tax Free Shopping Business Update for September 2024

Rhea-AI Summary

Global Blue's September 2024 Tax Free Shopping update shows positive growth worldwide. Continental Europe saw an 11% increase in issued Sales in Store, driven by a 14% rise in shoppers, despite a slight 2% decrease in average spend. US and GCC shoppers led with 13% growth, followed by Mainland Chinese at 11%. Spain (+24%) and Italy (+17%) performed well, while France showed moderate growth (+7%).

Asia Pacific experienced 19% growth, with a 29% increase in shoppers but an 8% decrease in average spend. This marks a slowdown from the previous three months' 63% growth, partly due to the strengthening Yen. Mainland Chinese spending led with 30% growth, boosted by a 75% increase in shoppers. South Korea (+45%) and Japan (+23%) showed strong performance, while Singapore declined slightly (-2%).

Positive

• Continental Europe: 11% increase in issued Sales in Store
• 14% increase in number of shoppers in Continental Europe
• US and GCC shopper Tax Free Spend up 13%
• Mainland Chinese shopper Tax Free Spend up 11% in Continental Europe
• Asia Pacific: 19% increase in issued Sales in Store
• 29% increase in number of shoppers in Asia Pacific
• Mainland Chinese Tax Free Spend in Asia Pacific up 30%
• 75% increase in Mainland Chinese shoppers in Asia Pacific
• South Korea destination market up 45%
• Japan destination market up 23%

Negative

• 2% decrease in average spend per shopper in Continental Europe
• 8% decrease in average spend per shopper in Asia Pacific
• Slowdown in Asia Pacific growth compared to previous three months
• Singapore destination market down 2%

Insights

Financial Analyst

Global Blue's September 2024 Tax Free Shopping update reveals a positive growth trend with worldwide Issued Sales in Store increasing by 13% year-over-year. This growth is driven by both Continental Europe (11%) and Asia Pacific (19%), indicating a robust recovery in international travel and luxury spending.

Key takeaways:

• Continental Europe saw a 14% increase in shoppers, slightly offset by a 2% decrease in average spend.
• Asia Pacific experienced a 29% surge in shoppers, despite an 8% drop in average spend.
• The recovery rate compared to 2019 levels reached 146% worldwide, showcasing strong post-pandemic rebound.

This data suggests a positive outlook for Global Blue and the luxury retail sector, with potential implications for increased transaction volumes and revenue. However, investors should monitor currency fluctuations, particularly the strengthening Yen, which impacted growth rates in Asia Pacific.

Market Research Analyst

The Tax Free Shopping data provides valuable insights into global tourism and luxury retail trends:

• Geographical Shifts: Continental Europe shows steady growth, while Asia Pacific's hyper-growth is moderating.
• Consumer Behavior: Increased shopper numbers (+14% in Europe, +29% in Asia) offset by slight decreases in average spend, indicating broader participation but potential price sensitivity.
• Market Leaders: Spain (+24%) and Italy (+17%) outperform in Europe, while South Korea (+45%) leads in Asia Pacific.

The 146% recovery rate compared to 2019 suggests a full rebound and expansion of the Tax Free Shopping market. This trend bodes well for luxury retailers, travel-related industries and companies like Global Blue that facilitate these transactions. Investors should consider the potential for continued growth, while being mindful of regional variations and economic factors affecting consumer spending patterns.

• New data from Global Blue reveals that the worldwide growth in Tax Free Shopping is positive across Continental Europe and Asia Pacific: Issued Sales in Store like-for-like year-on-year performance reached +13%¹ in September 2024.

SIGNY, Switzerland--(BUSINESS WIRE)-- A sustained performance in Continental Europe for international shopping

In Continental Europe, the issued Sales in Store growth rate increased by +11%¹ in September 2024 vs. last year. This growth was led by a +14%¹ increase in the number of shoppers. This performance was slightly impacted by a softening of -2%¹ in the average spend per shopper, as a result of an overall inflation slowdown.

When examining origin markets, the positive momentum in issued Sales in Store growth is steadily progressing across most nationalities. US and GCC shopper Tax Free Spend led at +13%¹ vs. last year, closely followed by Mainland Chinese shoppers at +11%¹.

Regarding destination markets, September showed a stable performance in Spain at +24%¹ and Italy at +17%¹, with a moderate performance in France at +7%¹.

A slowdown of the hyper growth Tax Free Spend in Asia Pacific

In Asia Pacific, the issued Sales in Store growth reached +19%¹ in September 2024, led by a +29%¹ increase in the number of shoppers and a -8%¹ decrease in the average spend per shopper.

The growth rate in September has softened compared to the hyper growth of +63%¹ over the last three months², mostly due to the recent strengthening of the Yen against all major currencies, particularly against the Chinese RMB.

Regarding origin markets, the positive momentum in issued Sales in Store growth continued across all nationalities. Mainland Chinese Tax Free Spend led with a +30%¹ increase, boosted by a +75%¹ rise in Mainland Chinese shoppers. Meanwhile, North East Asia Tax Free Spend grew by +29%¹ vs. last year, while Hong Kong and Taiwan experienced a +1%¹ growth rate vs. last year.

When examining destination markets, September showed a varied performance across destinations, with South Korea at +45%¹, Japan at +23%¹, and Singapore at -2%¹.

Worldwide Year-on-Year Growth Rate (2024 vs. 2023)

Issued SIS L/L Year-on-Year Growth	Destination market weight in Issued SIS 2023	September 2024	August 2024	July 2024	CY Q2 2024	CY Q1 2024
France	19%	+7%	+3%	-2%	+10%	+11%
Italy	17%	+17%	+12%	+19%	+22%	+29%
Spain	11%	+24%	+23%	+25%	+33%	+32%
Germany	6%	-3%	+3%	+10%	+2%	+6%
Other countries	18%	+7%	+8%	+12%	+21%	+16%
Total Continental Europe	71%	+11%	+10%	+12%	+19%	+19%
Japan	18%	+23%	+50%	+103%	+172%	+137%
Singapore	8%	-2%	+4%	-9%	-1%	25%
South Korea	2%	+45%	+43%	+44%	+60%	110%
Total Asia Pacific	28%	+19%	+37%	+64%	+109%	97%
Total Latin America	1%	+19%	+18%	+16%	-2%	+9%
Total worldwide	100%	+13%	+17%	+25%	+41%	40%

Issued SIS L/L recovery (in % of 2019)	Destination market weight in Issued SIS 2019	September 2024	August 2024	July 2024	CY Q2 2024	CY Q1 2024
France	16%	158%	141%	136%	164%	165%
Italy	17%	155%	139%	146%	156%	123%
Spain	10%	169%	153%	162%	164%	151%
Germany	9%	79%	68%	75%	80%	65%
Other countries	19%	127%	119%	129%	132%	126%
Total Continental Europe	71%	141%	126%	133%	143%	128%
Japan	14%	243%	282%	344%	327%	232%
Singapore	11%	74%	83%	85%	92%	92%
South Korea	3%	163%	159%	165%	158%	125%
Total Asia Pacific	28%	162%	180%	215%	226%	166%
Total Latin America	1%	142%	100%	89%	101%	94%
Total worldwide	100%	146%	138%	151%	165%	140%

Worldwide Recovery Rate (versus 2019)

APPENDIX

GLOSSARY

- European Non-EU countries include: Shoppers who can reach destination by land transportation or less than a two hour flight. Ex: Swiss, British, Ukraine etc.
- Gulf Cooperation Council countries include: Kuwait, Qatar, Saudi Arabia, United Arab Emirates, Bahrain, Oman
- North East Asia countries includes: Japan, South Korea
- South East Asia countries includes: Indonesia, Thailand, Cambodia, Philippines, Vietnam, Malaysia, Singapore

ABOUT GLOBAL BLUE

Global Blue is the business partner for the shopping journey, providing technology and services to enhance the experience and drive performance.

With over 40 years of expertise, today we connect thousands of retailers, acquirers, and hotels with nearly 80 million consumers across 53 countries, in three industries: Tax Free Shopping, Payments and Post-Purchase solutions.

With over 2,000 employees, Global Blue generated €28bn Sales in Store and €422M revenue in FY 2023/24. Global Blue is listed on the New York Stock Exchange.

For more information, please visit www.globalblue.com

Global Blue Monthly Intelligence Briefing, September 2024, Source: Global Blue

¹ Growth rate variation year-on-year (2024 vs. the same period in 2023)
² The last three months: June, July, and August 2024

View source version on businesswire.com: https://www.businesswire.com/news/home/20241010650283/en/

MEDIA CONTACTS

Virginie Alem – SVP Marketing & Communications

Mail: valem@globalblue.com

INVESTOR RELATIONS CONTACTS

Frances Gibbons – Head of Investor Relations

Mob: +44 (0)7815 034 212

Mail: fgibbons@globalblue.com

Source: Global Blue

FAQ

What was the global Tax Free Shopping growth rate for Global Blue (GB) in September 2024?

Global Blue reported a 13% year-on-year growth in worldwide issued Sales in Store for Tax Free Shopping in September 2024.

How did Continental Europe perform in Tax Free Shopping for Global Blue (GB) in September 2024?

Continental Europe saw an 11% increase in issued Sales in Store for Tax Free Shopping in September 2024, driven by a 14% rise in the number of shoppers.

What was the Tax Free Shopping growth rate in Asia Pacific for Global Blue (GB) in September 2024?

Global Blue reported a 19% growth in issued Sales in Store for Tax Free Shopping in Asia Pacific in September 2024, led by a 29% increase in the number of shoppers.

Which nationality led Tax Free Spend growth in Asia Pacific for Global Blue (GB) in September 2024?

Mainland Chinese shoppers led Tax Free Spend growth in Asia Pacific with a 30% increase in September 2024, according to Global Blue's report.