Significant Growth in Tax-Free Shopping: January Insights
Global Blue Announces Monthly Tax-Free Shopping Results for January 2025
In January 2025, Global Blue reported impressive growth in tax-free shopping, particularly in Continental Europe and the Asia Pacific region. This performance reflects a robust recovery and an increasing trend among international shoppers, providing insights into market dynamics.
Growth in Continental Europe
Continental Europe experienced a commendable increase in tax-free sales, with a 19% rise in store sales compared to the previous year. This boost is closely aligned with a 20% growth observed in December, showcasing sustained consumer interest. Notably, the uptick was driven primarily by a 24% increase in the number of shoppers, although the average spending per shopper slightly softened by 4%.
International Origins of Shoppers
Looking at the origin markets, U.S. shoppers led the charge with a remarkable 34% growth in tax-free spending year-on-year. This was followed by European non-EU shoppers, who recorded a 31% increase. Shoppers from the Gulf Cooperation Council (GCC) regions showed a 30% growth, while spending from Mainland Chinese shoppers remained stable with a modest 1% increase.
Destination Markets Performance
January also revealed strong performances in specific destination markets, with Spain leading at 28%, Italy close behind at 22%, and France at 15%. These figures underscore the attraction of these countries for international shoppers.
Accelerated Growth in the Asia Pacific
The Asia Pacific region displayed even stronger growth trends, with a striking 46% increase in tax-free sales compared to January of the previous year, surpassing December's 29% growth. This remarkable rise was fueled by a 36% increase in the number of shoppers and a modest 7% rise in average spending per shopper.
Shoppers from Key Origin Markets
Among the origin markets, tax-free spending by Mainland Chinese shoppers surged by 87%, driven by an impressive 113% growth in the number of those choosing to shop internationally. Meanwhile, shoppers from Hong Kong and Taiwan saw their tax-free spending rise by 22%. On the other hand, North East Asian shoppers exhibited a slight decline of 2% compared to last year.
Top Destination Markets in Asia
When analyzing specific destination markets within the Asia Pacific, noteworthy performances were recorded: South Korea posted a staggering 72% growth, Japan saw a 56% increase, and Singapore experienced a modest 8% growth. This diverse performance highlights the varying recovery rates and shopper behaviors across the region.
Global Performance Metrics
Taking a broader perspective, the worldwide year-on-year growth rates reflected significant recovery trends across all markets. This upwards trajectory points to a robust return of international shoppers to major retail hubs.
Recovery Rates Compared to 2019
Additionally, the recovery rates compared to 2019 demonstrate a strong comeback, particularly in Europe and Asia. For instance, France and Italy have attained recovery percentages well over 150%, signaling robust consumer confidence and spending power among international travelers.
Future Trends and Expectations
As we move forward in 2025, it is essential to remain vigilant to trends in consumer behavior, particularly among tax-free shopping segments. The notable increase in shoppers could indicate a more comprehensive recovery as global travel continues to rebound. Retailers must adapt to these changes to maximize performance.
About Global Blue
Global Blue is committed to enhancing the shopping experience for international shoppers through innovative technology and services. With over 40 years of expertise, Global Blue connects retailers, acquirers, and hotels with millions of consumers across numerous countries. In the fiscal year 2023/24, the company achieved significant sales milestones, with €28 billion in store sales and €422 million in revenue. Global Blue is publicly traded on the New York Stock Exchange.
Frequently Asked Questions
What does Global Blue do?
Global Blue provides tax-free shopping services, connecting retailers with international consumers to enhance the shopping experience.
How much did Global Blue grow in January 2025?
In January 2025, Global Blue reported a 19% growth in store sales compared to the previous year.
Which regions showed the most growth?
Continental Europe and the Asia Pacific region experienced significant growth, with the Asia Pacific showing a 46% increase in sales.
How did U.S. shoppers perform compared to others?
U.S. shoppers led tax-free spending growth at 34%, showing strong international shopping habits.
What is the outlook for tax-free shopping in 2025?
The outlook for tax-free shopping in 2025 appears positive, with increased consumer confidence and spending patterns indicating a recovery in international travel.
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