Global Blue Releases the Monthly Tax Free Shopping Business Update for December 2023

Rhea-AI Summary

Global Blue (NYSE:GB) reports solid recovery in Tax Free Shopping across Continental Europe and Asia Pacific. Recovery rates reached 130% in December compared to previous months, with strong recovery in Continental Europe and Asia Pacific, excluding Mainland Chinese and Russian shoppers.

Insights

Market Research Analyst

The data presented by Global Blue indicates a significant trend in the recovery of Tax Free Shopping, which is a vital indicator of consumer spending trends and tourism health. The substantial increase in Sales in Store like-for-like recovery, particularly in Continental Europe and Asia Pacific, is indicative of a robust return of international travel and consumer confidence post-pandemic. This resurgence is likely to have positive implications for the retail sector, especially luxury goods, which often benefit from tax-free shopping incentives aimed at tourists.

From a market research perspective, the exclusion of Mainland Chinese and Russian shoppers from the data provides a clearer picture of the recovery's organic growth, as these groups were previously substantial contributors to tax-free shopping sales. The impressive figures from US and GCC shoppers suggest a shift in consumer demographics that businesses might leverage to tailor marketing strategies and inventory decisions. Furthermore, the strong performance of destination markets like Greece, France and Japan may encourage investment in these regions' retail and tourism infrastructure.

Financial Analyst

The reported figures suggest an optimistic outlook for companies operating within the tax-free shopping ecosystem, including retailers, payment processors and travel-related services. The like-for-like sales recovery exceeding pre-pandemic levels implies that consumer spending in this sector is not only rebounding but also growing at a rate that surpasses historical benchmarks. This could result in upward revisions of revenue forecasts and potentially lead to positive stock price movements for publicly traded companies in the travel retail industry.

Investors should monitor the performance of key players in these markets as the increased spending could translate into higher earnings reports in upcoming quarters. However, it is crucial to consider the potential volatility in travel trends due to geopolitical events or economic downturns, which may affect the sustainability of this recovery. Companies that can capitalize on the current trends while mitigating risks associated with market fluctuations may offer attractive opportunities for investment.

Economist

The data from Global Blue could be interpreted as a microcosm of broader economic trends, particularly the resilience of consumer spending amidst global challenges. The recovery rates, especially when excluding the impact of Mainland Chinese and Russian shoppers, suggest that underlying economic conditions in various regions are robust enough to support discretionary spending on a scale that exceeds pre-pandemic levels. This bodes well for the global economic outlook, as consumer spending is a key driver of economic growth.

However, it is important to contextualize this recovery within the broader economic landscape, which includes factors such as inflationary pressures, currency fluctuations and geopolitical tensions. The weakened Japanese Yen, for example, has made Japan a more attractive destination for shoppers, impacting recovery rates in the region. Understanding these nuances is crucial for stakeholders to assess the sustainability of the recovery and to anticipate potential shifts in consumer behavior that could arise from changes in the economic environment.

SIGNY, Switzerland--(BUSINESS WIRE)-- Fresh data from Global Blue (NYSE:GB) reveals that the global dynamic recovery for Tax Free Shopping has remained solid across Continental Europe and Asia Pacific compared to previous months.

Globally, issued Sales in Store like-for-like recovery reached 130%¹ in December versus 125%¹ in October/November and 123%¹ in Q3 ’23.

A sustained recovery in Continental Europe

In Continental Europe, the recovery remains solid reaching 121%¹ in December vs. 117%¹ in October/November and 119%¹ in Q3 ’23, despite the events in Palestine. Excluding Mainland Chinese and Russian shoppers, (who represented 25% and 8% of Sales in Store in the region in 2019), the recovery would have reached 154%¹ in December vs. 153%¹ in October/November and 157%¹ in Q3 ‘23.

In terms of origin markets, US shoppers have sustained a strong level of recovery, reaching 246%¹ in December, consistent with October/November at 249%¹ and Q3 ’23 at 258%¹. GCC shopper recovery also remains solid at 230%¹ in December, vs. 248%¹ in October/November and 200%¹ in Q3 ‘23.

Regarding destination markets, December has maintained a stable recovery across most destinations with Greece at 165%¹, France at 145%¹, Spain at 143%¹, Switzerland at 133%¹, and Italy at 119%¹.

A steady recovery in Asia Pacific

In Asia Pacific, the recovery rate remains solid, reaching 151%¹ in December vs. 149%¹ in October/November and 134%¹ in Q3 ‘23 with Japan driving the acceleration in this region.

When excluding Mainland Chinese shoppers (who represented 55% of Sales in Store in the region in 2019), the recovery would have reached 198%¹ in December vs. 196%¹ in October/November and 169%¹ in Q3 ‘23.

Regarding origin markets, residents from Hong Kong and Taiwan and North East Asia continue to drive the strong recovery in Asia Pacific. Notably, travelers from Hong Kong and Taiwan sustained a significantly high recovery, reaching 512%¹ in December vs. 555%¹ in October/November and 448%¹ in Q3 ‘23. Following behind are North East Asia travelers, with a recovery rate of 336%¹ in December vs. 306%¹ in October/November and 203%¹ in Q3 ‘23.

When examining destination markets, Japan continues to propel in Asia Pacific due to the attraction of the weakened Japanese Yen, reaching 231%¹ in December, followed by South Korea at 106%¹.

Worldwide recovery of Mainland Chinese shoppers

In December, the worldwide Sales in Store like-for-like recovery of Mainland China shoppers reached 82%¹ vs. 77%¹ in October/November and 70%¹ in Q3’23.

Within Continental Europe, the Sales in Store like-for-like recovery among Mainland China shoppers has remained in line with previous months, bearing in mind that constraints such as the lead time required for visa issuance and limited group travel were still present in December. The recovery reached 58%¹ in December vs. 57%¹ in October/November and 45%¹ in Q3 ’23.

In Asia Pacific, the pace of the recovery has remained solid, reaching 104%¹ in December in line with October/November at 105%¹ and Q3 ’23 at 105%¹.

APPENDIX

YTD Data
Issued SIS L/L recovery1 (in % of 2019)	December 2023	November 2023	October 2023	Q3 2023	Q2 2023	Q1 2023	Q4 2022	Q3 2022
Continental Europe	121%	118%	115%	119%	121%	109%	104%	101%
Asia Pacific	151%	152%	147%	134%	111%	87%	80%	51%
TOTAL	130%	127%	123%	123%	118%	101%	97%	89%

Glossary

- Gulf Cooperation Council countries include: Kuwait, Qatar, Saudi Arabia, United Arab Emirates, Bahrain, Oman
- South East Asia includes: Indonesia, Thailand, Cambodia, Philippines, Vietnam, Malaysia, Singapore
- North East Asia includes: Japan, South Korea

ABOUT GLOBAL BLUE

Global Blue pioneered the concept of Tax Free Shopping 40 years ago. Through continuous innovation, we have become the leading strategic technology and payments partner, empowering retailers to improve their performance and shoppers to enhance their experience.

Global Blue offers innovative solutions in three different fields:

• Tax Free Shopping: Helping retailers at over 300,000 points of sale to efficiently manage 35 million Tax Free Shopping transactions a year, thanks to its fully integrated in-house technology platform. Meanwhile, its industry-leading digital Tax Free shopper solutions create a better, more seamless customer experience.
• Payment services: Providing a full suite of foreign exchange and Payment technology solutions that allow acquirers, hotels, and retailers to offer value-added services and improve the customer experience during 31 million payment transactions a year at 130,000 points of interaction.
• Complementary RetailTech: Offering new technology solutions to retailers, including digital receipts and eCommerce returns, that can be easily integrated with their core systems and allow them to optimize and digitalize their processes throughout the omni-channel customer journey, both in-store and online.

In addition, our data and advisory services offer a strategic advisory to help retailers identify opportunities for growth, while our shopper experience and engagement solutions provide data-driven solutions to increase footfall, convert footfall to revenue and enhance performance.

For more information, visit https://www.globalblue.com/about-us/media

Global Blue Monthly Speaker Notes Data, December 2023, Source: Global Blue

¹ Recovery rate is equal to 2023 Issued Sales in Store divided by 2019 Issued Sales in Store, like-for-like (i.e.: at constant merchant scope and exchange rates).

View source version on businesswire.com: https://www.businesswire.com/news/home/20240111878557/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 is the recovery rate for Tax Free Shopping in December for Global Blue (NYSE:GB)?

The recovery rate for Tax Free Shopping in December for Global Blue (NYSE:GB) reached 130%.

Which regions showed strong recovery for Tax Free Shopping?

Continental Europe and Asia Pacific showed strong recovery for Tax Free Shopping, with recovery rates reaching 121% and 151% respectively in December.

What is the recovery rate for US shoppers in December for Global Blue (NYSE:GB)?

US shoppers sustained a strong level of recovery, reaching 246% in December for Global Blue (NYSE:GB).

Which destination markets maintained a stable recovery in December for Global Blue (NYSE:GB)?

Greece, France, Spain, Switzerland, and Italy maintained a stable recovery in December for Global Blue (NYSE:GB.

What is the recovery rate for Mainland Chinese shoppers in December for Global Blue (NYSE:GB)?

The worldwide Sales in Store like-for-like recovery of Mainland Chinese shoppers reached 82% in December for Global Blue (NYSE:GB).