It has been reported that in August, London’s West End saw a spike in trade from overseas visitors as the quantity spent by Chinese tourists increased 65%. Whilst spending from Hong Kong tourists increased 72% and US spending rose 74%.
Figures show that total non-EU rose 44% year-on-year with total sales in the district increasing 1.5%. In particular, Bond Street had a strong month for non-EU sales where trade climbed 48%.
Luxury and jewellery sectors performed the best, with an increase in sales of 19% and 19.5% respectively.
New West End Company’s chief executive, Jace Tyrrell, commented: “The West End has enjoyed a remarkable summer, with the £400 million total spend in July giving way to a 44% increase in sales across the district in August. Tourists are evidently still keen to cash in on the weak pound and thus have helped alleviate, albeit on a temporary basis, some of the shockwaves that hit the economy following the Brexit vote.
“The longer-term horizon once the process of leaving the EU gets underway looks less bright, as the business rates revaluation in early 2017 will hit West End retailers’ profits by up to 25% in some cases. Retailers are also expected to manage an average 80% increase which will undoubtedly have significant knock-on effects. In the new post-Brexit environment, the Government should look to support, not undermine, the UK’s economic wellbeing given the uncertain times ahead.”
The company also commented, saying the rise in tourist spend has done a lot to lighten immediate post Brexit economic flux, however consumer confidence is less certain. It also highlighted the constant challenges retailers are facing, particularly a business rates revaluation in early 2017 which will increase costs on West End retailers by an average of 80%.
