Global Blue Releases the Monthly Tax Free Shopping Business Update for February 2024
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Insights
The reported recovery in Tax Free Shopping, with a global issued Sales in Store like-for-like recovery reaching 141% in February 2024 compared to February 2019, indicates a robust resurgence in international consumer spending. This resurgence is particularly notable in Continental Europe and Asia Pacific, regions that are significant for luxury and retail sectors. The data reflects a consumer confidence rebound, which can stimulate related stock market segments, potentially leading to increased investor interest in retail, luxury goods and travel-related industries.
The strong recovery rates in countries like France, Spain and Italy, all exceeding 130%, suggest a positive trajectory for the retail sector in these regions. This could imply a favorable environment for businesses operating in these areas, potentially translating into higher earnings and stock performance for companies within the retail and luxury goods sectors. The exceptional growth observed from GCC and US shoppers, with recovery rates of 404% and 316% respectively, highlights the importance of these demographics for the European market.
Furthermore, the Visa-Free policy for Chinese travelers in Singapore and its positive impact on recovery rates is a strategic move that could enhance Singapore's retail sector. The policy may attract more Chinese tourists, leading to an increase in sales for businesses catering to this market. Retailers and investors should monitor these trends closely as they may present opportunities for market expansion and portfolio diversification.
The year-on-year growth in Tax Free Shopping, with Continental Europe showing a +32% increase and Asia Pacific a +120% increase in February 2024 compared to the previous year, is indicative of a strong financial performance in the retail sector. This growth can have a positive impact on the stock market, particularly for companies with significant exposure to these regions or those who have invested in strategies to capitalize on the spending habits of international shoppers.
Mainland Chinese shoppers' spending has shown a remarkable +222% growth rate in February 2024 in Continental Europe, despite a slight month-over-month decline, which could be attributed to the high basis of comparison due to the 2019 Lunar New Year. This demographic's spending power remains a critical factor for businesses and investors, as evidenced by their leading contribution to the growth rates. The performance of Mainland Chinese shoppers in Asia Pacific remains robust as well, with a recovery rate of 121% in February.
Investors should consider the implications of these trends on the retail and luxury goods sectors. Companies that have strategically positioned themselves to benefit from the resurgence of international shopping, particularly those that cater to the preferences of GCC, US and Mainland Chinese shoppers, may see improved financial metrics and potentially higher stock valuations.
The data reflects a broader economic recovery post-pandemic, with international travel and spending patterns returning to and even surpassing pre-pandemic levels. The strong recovery in Tax Free Shopping serves as an economic indicator of consumer confidence and discretionary spending capabilities. The observed recovery rates are a sign of economic vitality in the regions mentioned, which could lead to increased employment, higher tax revenues and overall economic growth.
The seasonal shift of the pre-Ramadan shopping acceleration contributing to high recovery rates among GCC shoppers is an example of how cultural and seasonal factors can significantly impact consumer behavior and economic performance. It is essential for businesses and policymakers to understand these patterns to make informed decisions regarding marketing, inventory and resource allocation.
The impact of the Visa-Free policy for Chinese travelers in Singapore highlights the importance of governmental policies in facilitating economic recovery and growth. Such policies can create a ripple effect, benefiting not just the retail sector but also the broader service industry, including hospitality and transportation, potentially leading to a more robust economic environment and investment opportunities.
SIGNY,
Globally, issued Sales in Store like-for-like recovery reached
A steady worldwide recovery, compared to 2019 levels
In Continental
In terms of origin markets, GCC shoppers benefited from the seasonal shift of the pre-Ramadan shopping acceleration, reaching
In
Regarding origin markets, travelers from
In terms of Mainland Chinese shoppers, the worldwide issued Sales in Store like-for-like recovery reached
A strong year-on-year performance for international shopping
When analyzing the year-on-year variation in Tax Free Shopping growth, issued Sales in Store in Continental Europe grew by +
In terms of origin markets, the growth was positively influenced by most nationalities, with Mainland Chinese shoppers leading the way with a +
In
APPENDIX
Worldwide recovery rate (versus 2019)
Issued SIS L/L
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% Tax Free
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February
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January
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Q4
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Q3
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Q2
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Q1
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Other countries |
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Total
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Total |
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TOTAL
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Worldwide Year-on-Year Growth rate (2024 vs. 2023)
Issued SIS L/L
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February
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January
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CY (2023) |
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+ |
+ |
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+ |
+ |
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+ |
+ |
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+ |
+ |
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Other countries |
+ |
+ |
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Total
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+ |
+ |
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+ |
+ |
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+ |
+ |
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+ |
+ |
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Total |
+ |
+ |
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TOTAL WORLDWIDE |
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+ |
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Glossary
- Gulf Cooperation Council countries include:
-
- North East Asia includes:
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, February 2024, Source: Global Blue
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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 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/20240307482475/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 latest data from Global Blue regarding Tax Free Shopping?
Which key markets show significant growth in Tax Free Shopping according to the data?
Who leads the year-on-year growth in Tax Free Shopping in February 2024?
