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

Rhea-AI Summary

Global Blue reported an accelerated recovery for Tax Free Shopping in May 2024 compared to 2019 levels. The global recovery rate reached 172%, up from 153% in April and 140% in Q1. Mainland Chinese shoppers drove significant growth, especially in Japan, which saw a 258% recovery rate due to favorable FX rates. Continental Europe achieved a 145% recovery, boosted by France (170%), Spain (169%), and Italy (164%). Asia Pacific recorded a 250% recovery rate, led by Japan (360%). Year-on-year growth for May 2024 was 47%, with Mainland Chinese shoppers showing a 164% increase. US and GCC shoppers also contributed to strong growth.

Positive

• Global Tax Free Shopping recovery reached 172% in May 2024 vs. 2019.
• Mainland Chinese shopper recovery accelerated to 132% in May.
• Japan achieved a record recovery rate of 258% in May.
• Continental Europe saw a 145% recovery in May, led by France at 170%.
• Asia Pacific's recovery rate hit 250% in May, driven by Japan (360%).
• Year-on-year growth reached 47% in May 2024.
• US and GCC shoppers showed strong recovery rates of 307% and 633% respectively.

Negative

• Mainland Chinese shopper recovery in Continental Europe softened to 59% in May from 68% in April.
• Germany's recovery rate remained stagnant at 73% in May, unchanged from April.

Insights

Financial Analyst

May 2024 data provided by Global Blue indicates a robust recovery in Tax-Free Shopping, significantly surpassing 2019 levels. The worldwide recovery rate of 172% in May compared to 153% in April and 140% in Q1 2024 underscores the ongoing momentum. Particularly notable is Japan, which has become a premier destination due to a favorable exchange rate, with a staggering recovery rate of 258%. This trend suggests that the economic environment, coupled with strategic currency fluctuations, is making certain markets exceedingly attractive for shoppers.

From an investor's perspective, these figures imply a potential boost in retail and tourism-related stocks. The notable recovery in Mainland Chinese shoppers, especially in Japan, could drive revenues for companies within these sectors. However, fluctuations in recovery rates driven by external factors such as the Ramadan calendar highlight the importance of considering regional nuances when evaluating investment opportunities.

It's important to remain cautious about the sustainability of these recovery rates. While short-term gains are promising, the long-term stability is uncertain due to economic and geopolitical factors that could impact international travel and spending.

Market Research Analyst

Examining the data through a market research lens, the high recovery rates in specific regions reveal consumer behavior patterns and preferences. The considerable increase in Mainland Chinese shoppers flocking to Japan due to the low Yen illustrates price elasticity; shoppers are highly responsive to changes in exchange rates. This suggests a strong price sensitivity in the luxury shopping segment among Chinese travelers. Understanding such dynamics can help retailers target marketing efforts more effectively.

Moreover, the stark recovery differences between regions such as Asia Pacific (250%) and Continental Europe (145%) highlight varied recovery trajectories. Such discrepancies emphasize the need for localized strategies in global markets. Retailers and investors should focus on regions showing the highest growth potential while also being aware of the underlying factors contributing to these trends.

• Fresh data from Global Blue reveals that the global dynamic recovery for Tax Free Shopping accelerated across Continental Europe and Asia Pacific.

• Globally, issued Sales in Store like-for-like recovery reached 172%¹ in May 2024 compared to the same period in 2019, vs. 153%¹ in April 2024 and 140%¹ in Q1 2024.

SIGNY, Switzerland--(BUSINESS WIRE)-- An accelerating worldwide recovery, compared to 2019 levels

Globally, May 2024 recovery is ahead of April 2024 recovery, reaching 172%¹ in May vs. 153%¹ in April and 140%¹ in Q1, driven by a solid momentum across nationalities.

In terms of origin markets, Mainland Chinese shopper recovery continues to accelerate, reaching 132%¹ in May versus 112%¹ in April and 101%¹ in Q1, yet with different dynamics across regions. Japan is currently the country benefiting the most from this acceleration, reaching a record recovery rate of 258%¹ in May. This strong performance is attributed to a low Japanese Yen, making Japan today’s most attractive shopping destination around the world for Chinese shoppers, who are highly sensitive to FX rates (pricing elasticity estimated at 3.0x). As a result, 64% of worldwide Mainland Chinese shoppers’ Sales in Store in May is now allocated to Japan, compared to 33% in 2019.

Regarding other nationalities, the recovery is also accelerating, with rates of 210% in May, versus 187% in April and 177% in Q1.

In Continental Europe, May 2024 recovery is ahead of April 2024 recovery, reaching 145%¹ in May vs. 137%¹ in April, driven by a strong recovery in France (170%¹), Spain (169%¹) and Italy (164%¹). This higher performance is due to a favorable basis of comparison in May, linked to the shift in the Ramadan calendar². Excluding this effect, the Continental Europe recovery rate in May would have reached 138%. Regarding origin markets, US shopper recovery remains strong, reaching 307%¹ in May vs. 336%¹ in April. GCC shopper recovery² stood at 633%¹ vs. 198%¹ in April, driven by the shift in the Ramadan calendar effect. The recovery from Mainland Chinese shoppers softened slightly in May, at 59%¹ compared to 68%¹ in April.

In Asia Pacific, the recovery rate reached a record level at 250%¹ in May vs. 194%¹ in April, fueled by strong performances in Japan (360%¹) and South Korea (164%¹). In terms of origin markets, travelers from Hong Kong and Taiwan continue to lead the recovery, reaching 705%¹ in May vs. 517%¹ in April. Following behind are North East Asia travelers, with a recovery rate of 378%¹ in May vs. 323%¹ in April. Regarding Mainland Chinese shoppers, the recovery continues to accelerate, reaching 221%¹ in May, versus 156%¹ in April.

A strong year-on-year performance for international shopping

When analyzing the year-on-year variation in Tax Free Shopping growth, the worldwide issued Sales in Store like-for-like year-on-year performance reached +47%³ in May 2024 vs. +46%³ in April and +40%³ in Q1. The momentum remains solid across nationalities, with Mainland Chinese shoppers, in particular, growing by +164%³ in May 2024, vs. +148%³ in April and +214%³ in Q1 2024.

The issued Sales in Store in Continental Europe grew by +19%³ in May 2024 vs. last year, influenced by a positive dynamic across nationalities. Regarding origin markets, a positive momentum for issued Sales in Stores growth is visible across all nationalities, with Mainland Chinese shoppers leading the way with a +39%³ growth rate in May 2024. US shopper growth reached +21%³ and GCC shopper growth reached +20%³.

In Asia Pacific, the issued Sales in Stores growth rate continues to remain high, reaching +134%³ in May 2024 vs. last year. All nationalities contributed positively, with Mainland Chinese leading the way at +272%³ in May 2024 vs. 2023, North East shoppers at +163%³ and Hong Kong and Taiwan at +92%³.

APPENDIX

Worldwide recovery rate (versus 2019) rate

Issued SIS L/L recovery1 (in % of 2019)	% Issued SIS 2019	May 2024	April 2024	March 2024	February 2024	CY Q1 2024	CY Q4 2023
France	22%	170%	158%	160%	174%	165%	140%
Italy	24%	164%	145%	135%	131%	123%	123%
Spain	14%	169%	166%	152%	134%	151%	133%
Germany	13%	73%	73%	69%	71%	65%	74%
Other countries	27%	127%	129%	121%	127%	126%	111%
Total Continental Europe	100%	145%	137%	130%	132%	128%	118%
Japan	54%	360%	262%	235%	229%	232%	225%
Singapore	42%	103%	81%	111%	84%	92%	75%
South Korea	4%	164%	140%	127%	118%	125%	111%
Total Asia Pacific	100%	250%	192%	181%	159%	166%	150%
Total worldwide	100%	172%	153%	145%	141%	140%	127%

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

Issued SIS L/L Year-on-Year Growth3	% Issued SIS 2023	May 2024	April 2024	March 2024	February 2024	January 2024	CY Q1 2024
France	26%	+14%	+13%	+3%	+21%	+11%	+11%
Italy	25%	+29%	+30%	+20%	+44%	+26%	+29%
Spain	15%	+33%	+38%	+18%	+52%	+31%	+32%
Germany	8%	-7%	+15%	-10%	+9%	+20%	+6%
Other countries	26%	+21%	+24%	+9%	+30%	+8%	+16%
Total Continental Europe	100%	+19%	+25%	+9%	+32%	+17%	+19%
Japan	65%	+222%	+167%	+146%	+170%	+100%	+137%
Singapore	27%	+2%	-4%	+24%	+36%	+15%	25%
South Korea	8%	+58%	+63%	+96%	+138%	+108%	110%
Total Asia Pacific	100%	+134%	+103%	+102%	+120%	+71%	97%
Total worldwide	100%	+47%	+46%	+33%	57%	+34%	40%

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 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, May 2024, Source: Global Blue

¹ Recovery rate is equal to 2024 Issued Sales in Store divided by 2019 Issued Sales in Store, like-for-like (i.e.: at constant merchant scope and exchange rates).

² Ramadan took place from March 10 to April 9 in 2024; while it took place from May 5 to June 3 in 2019.

³ Growth rate variation year-on-year (2024 vs. the same period in 2023)

View source version on businesswire.com: https://www.businesswire.com/news/home/20240607198692/en/

MEDIA



Virginie Alem – SVP Marketing & Communications

Mail: valem@globalblue.com



INVESTOR RELATIONS



Frances Gibbons – Head of Investor Relations

Mob: +44 (0)7815 034 212

Mail: fgibbons@globalblue.com

Source: Global Blue

FAQ

What is the global recovery rate for Tax Free Shopping in May 2024?

The global recovery rate for Tax Free Shopping in May 2024 reached 172%, up from 153% in April 2024.

How did Mainland Chinese shopper recovery perform in May 2024?

Mainland Chinese shopper recovery accelerated to 132% in May 2024, compared to 112% in April 2024.

What was the recovery rate for Japan in May 2024?

Japan achieved a record recovery rate of 258% in May 2024.

How did Continental Europe perform in Tax Free Shopping recovery in May 2024?

Continental Europe saw a 145% recovery in May 2024, led by France (170%), Spain (169%), and Italy (164%).

What was the year-on-year growth rate for Tax Free Shopping in May 2024?

The year-on-year growth rate for Tax Free Shopping in May 2024 was 47%.

How did the recovery rate of US shoppers change in May 2024?

The recovery rate of US shoppers reached 307% in May 2024, compared to 336% in April 2024.

What was the recovery rate for GCC shoppers in May 2024?

GCC shoppers had a recovery rate of 633% in May 2024, driven by the shift in the Ramadan calendar.

How did Asia Pacific perform in Tax Free Shopping recovery in May 2024?

Asia Pacific recorded a 250% recovery rate in May 2024, led by Japan at 360%.