Luxury sales in Italy and France sustained by foreign wealthy travellers
Luxury sales to locals in France and Italy has been on a steep delcine in the past year, reaching as much as 40%. Luxury mono-brand boutiques in smaller cities outside the major luxury shopping hubs (Paris, Milan, Florence and Rome) have also been suffering with an estimated 30% drop in sales.
In Italy, according to Global Blue, Tax Free shopping has increased in 2012 by 32% of which Russians with a 26% growth in luxury purchases, Chinese with 16%, Japanese with 8% and Americans with 6%, while Koreans, Swiss, Singaporeans, Taiwanese and Brazilians each with a 3% increase in luxury purchases. Of all luxury tax free sales, 73% were fashion and accessories, with jewellery/watches accounting for 16%.