Global Blue Releases the Monthly Tax Free Shopping Business Update for January 2024

Rhea-AI Summary

Global Blue (NYSE:GB) has reported a dynamic recovery for Tax Free Shopping across Continental Europe and Asia Pacific, with a 135% issued Sales in Store like-for-like recovery in January 2024 compared to 2019. The recovery strengthened in Continental Europe, fueled by strong performance in France and Spain, while US and GCC shoppers sustained a strong level of recovery. Mainland Chinese shopper recovery continues to accelerate, reaching 80% in January 2024. Year-on-year growth in Tax Free Shopping growth saw a +17% increase in Continental Europe and a +71% increase in Asia Pacific in January 2024 compared to last year.

Market Research Analyst

The data provided by Global Blue indicates a robust resurgence in Tax Free Shopping, which is a strong indicator of consumer confidence and discretionary spending. This resurgence is particularly pronounced in Continental Europe and Asia Pacific, with numbers surpassing pre-pandemic levels. Such trends often correlate with increased retail and luxury goods sector performance, suggesting a positive outlook for businesses operating within these regions. The substantial growth in Tax Free Shopping by US, GCC and Mainland Chinese shoppers highlights a significant shift in consumer behavior, which could influence retail strategies and stock valuations of companies catering to these demographics.

From an investment standpoint, the sectors likely to benefit from this trend include luxury goods, retail and travel. Companies with a strong presence in the highlighted regions might see improved earnings, potentially leading to stock price appreciation. However, businesses that have not adapted to the changing landscape of consumer preferences might face challenges. It is essential for investors to monitor these shifts and consider the implications for portfolio diversification and risk management.

Economist

The report's implications extend beyond the retail sector, reflecting broader economic trends. The increase in Tax Free Shopping suggests a recovery in international tourism, which is a vital component of economic growth for many countries. The data indicates not only a return to pre-pandemic levels but, in many cases, a significant overshoot, which could signal a 'catch-up' effect as consumers unleash pent-up demand. This is particularly evident with Mainland Chinese shoppers, whose spending has surged as travel restrictions eased.

Such spending patterns can have multiplier effects on the economy, including job creation in the retail and hospitality sectors. The strong performance in Tax Free Shopping might also contribute to the GDP of countries that are popular shopping destinations. However, the uneven recovery across different regions and the potential for inflationary pressures due to increased spending should be carefully considered. Economic policies and currency exchange rates can also influence cross-border shopping, affecting the sustainability of this recovery.

Financial Analyst

Analyzing the financial implications of the reported Tax Free Shopping growth, it is evident that certain markets and sectors are poised to benefit substantially. Retailers and luxury goods companies with exposure to the French, Spanish and Japanese markets may see their revenue and margins expand, reflecting positively on their financial statements. The data suggests that these companies could be attractive to investors seeking growth opportunities.

However, it is crucial to delve deeper into the financial health of individual companies to understand how they are capitalizing on this growth. Factors such as cost management, supply chain efficiency and inventory control will determine the extent to which increased sales translate into bottom-line improvements. Additionally, the report's year-on-year growth rates provide a useful comparison to industry benchmarks, allowing investors to identify outperformers. It is important to remain cautious, as such spikes in consumer spending may not be sustainable in the long term, particularly if driven by temporary factors such as pent-up demand or government stimulus.

SIGNY, Switzerland--(BUSINESS WIRE)-- Fresh data from Global Blue (NYSE:GB) reveals that the global dynamic recovery for Tax Free Shopping has accelerated across Continental Europe and Asia Pacific.

Globally, issued Sales in Store like-for-like recovery reached 135%¹ in January 2024 compared to the same period in 2019, vs. 127% in Q4 ’23.

A worldwide sustained recovery, compared to 2019 levels

In Continental Europe, the recovery strengthened, reaching 125%¹ in January vs. 118% in Q4 ‘23, fueled by a strong recovery in France (164%¹) and Spain (153%¹). Regarding origin markets, US shoppers sustained a strong level of recovery, reaching 290%¹ in January vs. 248%¹ in Q4 ’23. Similarly, GCC shoppers reached 273%¹ in January vs. 240%¹ in Q4 ‘23. Mainland Chinese shopper recovery continues to accelerate, reaching 80%¹ in January vs. 58%¹ in Q4 ’23, thanks to increased flight connections and higher visa issuance capacity.

In Asia Pacific, the recovery rate reached a record level at 161%¹ in January vs. 150%¹ in Q4 ‘23, led by Japan (232%). In terms of origin markets, travelers from Hong Kong and Taiwan sustained a high recovery, reaching 426%¹ in January vs. 538%¹ in Q4 ‘23. Following behind are North East Asia travelers, with a recovery rate of 242%¹ in January vs. 318%¹ in Q4 ‘23. Mainland Chinese shopper recovery continues to propel, reaching 127%¹ in January vs. 105%¹ in Q4’ 23.

A strong year-on-year performance for international shopping

When analyzing the year-on-year variation in Tax Free Shopping growth, Issued Sales in store in Continental Europe grew by +17%² in January 2024 vs. last year.

In terms of origin markets, the growth was positively influenced by most nationalities, with Mainland Chinese shoppers leading the way with a +259%² growth rate in January 2024. Despite a high basis of comparison, GCC shoppers continue to show strong growth at +27%², while US shoppers Tax Free Spend remains flat compared to last year (-2%²).

In Asia Pacific, the growth rate reached +71%² in January 2024 vs. last year. Most nationalities are positively contributing, with Mainland Chinese shoppers leading the way at +239%² in January 2024 vs. 2023, North East shoppers at +54%² and Hong Kong and Taiwan shoppers at +13%².

APPENDIX

Worldwide recovery rate (versus 2019)

Issued SIS L/L recovery1 (in % of 2019)	% Tax Free Spend (2019)	January 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023
France	22%	164%	140%	138%	146%	147%
Italy	24%	111%	123%	126%	128%	97%
Spain	14%	153%	133%	127%	122%	114%
Germany	13%	70%	74%	70%	77%	66%
Other countries	27%	121%	111%	119%	121%	108%
Total Continental Europe	100%	125%	118%	119%	121%	109%
Japan	54%	232%	225%	185%	121%	98%
Singapore	42%	85%	75%	84%	95%	74%
South Korea	4%	131%	111%	116%	109%	73%
Total Asia Pacific	100%	161%	150%	134%	111%	87%
TOTAL WORLDWIDE	100%	135%	127%	123%	118%	101%

Worldwide Year-on-Year Growth rate (2024 vs. 2023)

Issued SIS L/L Year-on-Year Growth2	% Tax Free Spend (2023)	January 2024
France	26%	+11%
Italy	25%	+26%
Spain	15%	+31%
Germany	8%	+20%
Other countries	26%	+8%
Total Continental Europe	100%	+17%
Japan	65%	+100%
Singapore	27%	+15%
South Korea	8%	+108%
Total Asia Pacific	100%	+71%
TOTAL WORLDWIDE	100%	+34%

Glossary

- Gulf Cooperation Council countries include: Kuwait, Qatar, Saudi Arabia, United Arab Emirates, Bahrain, Oman
- South East Asia includes: Indonesia, Thailand, Cambodia, Philippines, Vietnam, Malaysia, Singapore
- North East Asia includes: Japan, South Korea

ABOUT GLOBAL BLUE

Global Blue pioneered the concept of Tax Free Shopping 40 years ago. Through continuous innovation, we have become the leading strategic technology and payments partner, empowering retailers to improve their performance and shoppers to enhance their experience.

Global Blue offers innovative solutions in three different fields:

• Tax Free Shopping: Helping retailers at over 300,000 points of sale to efficiently manage 35 million Tax Free Shopping transactions a year, thanks to its fully integrated in-house technology platform. Meanwhile, its industry-leading digital Tax Free shopper solutions create a better, more seamless customer experience.
• Payment services: Providing a full suite of foreign exchange and Payment technology solutions that allow acquirers, hotels, and retailers to offer value-added services and improve the customer experience during 31 million payment transactions a year at 130,000 points of interaction.
• Complementary RetailTech: Offering new technology solutions to retailers, including digital receipts and eCommerce returns, that can be easily integrated with their core systems and allow them to optimize and digitalize their processes throughout the omni-channel customer journey, both in-store and online.

In addition, our data and advisory services offer a strategic advisory to help retailers identify opportunities for growth, while our shopper experience and engagement solutions provide data-driven solutions to increase footfall, convert footfall to revenue and enhance performance.

For more information, visit https://www.globalblue.com/about-us/media

Global Blue Monthly Speaker Notes Data, January 2024, Source: Global Blue

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1} Recovery rate is equal to 2023 Issued Sales in Store divided by 2019 Issued Sales in Store, like-for-like (i.e.: at constant merchant scope and exchange rates).

² Growth rate variation year-on-year (2024 vs. the same period in 2023)

View source version on businesswire.com: https://www.businesswire.com/news/home/20240208674530/en/

MEDIA CONTACTS

Virginie Alem – SVP Marketing & Communications

Mail: valem@globalblue.com

INVESTOR RELATIONS CONTACTS

Frances Gibbons – Head of Investor Relations

Mob: +44 (0)7815 034 212

Mail: fgibbons@globalblue.com

Source: Global Blue

What is the latest data from Global Blue regarding Tax Free Shopping recovery?

Global Blue has reported a dynamic recovery for Tax Free Shopping across Continental Europe and Asia Pacific, with a 135% issued Sales in Store like-for-like recovery in January 2024 compared to 2019.

How did the recovery strengthen in Continental Europe?

The recovery in Continental Europe strengthened, reaching 125% in January 2024 compared to 118% in Q4 '23, fueled by a strong recovery in France (164%) and Spain (153%).

What is the year-on-year growth rate in Tax Free Shopping in January 2024?

Year-on-year growth in Tax Free Shopping growth saw a +17% increase in Continental Europe and a +71% increase in Asia Pacific in January 2024 compared to last year.

Which origin markets showed strong recovery in Tax Free Shopping?

US and GCC shoppers sustained a strong level of recovery, while Mainland Chinese shopper recovery continues to accelerate, reaching 80% in January 2024.

What was the growth rate of Mainland Chinese shoppers in January 2024?

Mainland Chinese shoppers led the way with a +259% growth rate in January 2024 compared to last year.

What is the ticker symbol for Global Blue?

The ticker symbol for Global Blue is GB.