According to Michael Ward, the managing director of Harrods, the 173-year-old retailer is falling behind Paris and Milan’s luxury trade subsequent to the UK axing VAT-free shopping.
Paris and Milan are overtaking London’s luxury trade, Michael Ward warns. Speaking to The Telegraph, he claims the decision to stop VAT-free shopping has put tourists off making luxury purchases in Britain’s capital city.
European countries, such as France and Italy, both still allow international shoppers to claim VAT back, yet the UK stopped this following Brexit at the end of 2020. To combat this decline in tourism, Harrods has made efforts to source exclusive designer pieces that aren’t available to shoppers in other European capitals.
Former Chancellor Kwasi Kwarteng planned to bring VAT-free shopping back in an update during autumn 2022. However, Chancellor Jeremy Hunt went back on this.
Ward urges the government to overturn its tourism strategy as people