THE WHAT? A group of leading retailers and luxury brands have warned the UK Treasury that they will re-visit investment plans if the proposed abolition of duty-free shopping forges ahead, according to a report published in the Financial Times.
THE DETAILS The end of the VAT refund for international visitors, which is expected to be ushered in in the New Year, could lead to lower demand, and therefore brands and retailers will revisit expansion plans – investment to the tune of £1 billion could be re-routed elsewhere, the FT reports.
THE WHY? Capital expenditure is higher in the travel retail sector, says the FT, with refurbishments taking place more frequently. What’s more, international visitors will be more likely to visit another high-profile European shopping destination if the UK no longer offers an incentive to tourist shoppers.