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

Rhea-AI Summary

Global Blue's new data reveals a strong recovery in Tax Free Shopping globally, with significant growth in Continental Europe and Asia Pacific. Key markets like France, Spain, Italy, GCC, US, Japan, and Mainland China show robust recovery rates. Mainland Chinese shoppers lead the growth with a +222% year-on-year increase in February 2024.

Market Research Analyst

The reported recovery in Tax Free Shopping, with a global issued Sales in Store like-for-like recovery reaching 141% in February 2024 compared to February 2019, indicates a robust resurgence in international consumer spending. This resurgence is particularly notable in Continental Europe and Asia Pacific, regions that are significant for luxury and retail sectors. The data reflects a consumer confidence rebound, which can stimulate related stock market segments, potentially leading to increased investor interest in retail, luxury goods and travel-related industries.

The strong recovery rates in countries like France, Spain and Italy, all exceeding 130%, suggest a positive trajectory for the retail sector in these regions. This could imply a favorable environment for businesses operating in these areas, potentially translating into higher earnings and stock performance for companies within the retail and luxury goods sectors. The exceptional growth observed from GCC and US shoppers, with recovery rates of 404% and 316% respectively, highlights the importance of these demographics for the European market.

Furthermore, the Visa-Free policy for Chinese travelers in Singapore and its positive impact on recovery rates is a strategic move that could enhance Singapore's retail sector. The policy may attract more Chinese tourists, leading to an increase in sales for businesses catering to this market. Retailers and investors should monitor these trends closely as they may present opportunities for market expansion and portfolio diversification.

Financial Analyst

The year-on-year growth in Tax Free Shopping, with Continental Europe showing a +32% increase and Asia Pacific a +120% increase in February 2024 compared to the previous year, is indicative of a strong financial performance in the retail sector. This growth can have a positive impact on the stock market, particularly for companies with significant exposure to these regions or those who have invested in strategies to capitalize on the spending habits of international shoppers.

Mainland Chinese shoppers' spending has shown a remarkable +222% growth rate in February 2024 in Continental Europe, despite a slight month-over-month decline, which could be attributed to the high basis of comparison due to the 2019 Lunar New Year. This demographic's spending power remains a critical factor for businesses and investors, as evidenced by their leading contribution to the growth rates. The performance of Mainland Chinese shoppers in Asia Pacific remains robust as well, with a recovery rate of 121% in February.

Investors should consider the implications of these trends on the retail and luxury goods sectors. Companies that have strategically positioned themselves to benefit from the resurgence of international shopping, particularly those that cater to the preferences of GCC, US and Mainland Chinese shoppers, may see improved financial metrics and potentially higher stock valuations.

Economist

The data reflects a broader economic recovery post-pandemic, with international travel and spending patterns returning to and even surpassing pre-pandemic levels. The strong recovery in Tax Free Shopping serves as an economic indicator of consumer confidence and discretionary spending capabilities. The observed recovery rates are a sign of economic vitality in the regions mentioned, which could lead to increased employment, higher tax revenues and overall economic growth.

The seasonal shift of the pre-Ramadan shopping acceleration contributing to high recovery rates among GCC shoppers is an example of how cultural and seasonal factors can significantly impact consumer behavior and economic performance. It is essential for businesses and policymakers to understand these patterns to make informed decisions regarding marketing, inventory and resource allocation.

The impact of the Visa-Free policy for Chinese travelers in Singapore highlights the importance of governmental policies in facilitating economic recovery and growth. Such policies can create a ripple effect, benefiting not just the retail sector but also the broader service industry, including hospitality and transportation, potentially leading to a more robust economic environment and investment opportunities.

SIGNY, Switzerland--(BUSINESS WIRE)-- New data from Global Blue reveals that the global dynamic recovery for Tax Free Shopping remains strong across Continental Europe and Asia Pacific.

Globally, issued Sales in Store like-for-like recovery reached 141%¹ in February 2024 compared to the same period in 2019, vs. 135%¹ in January ’24.

A steady worldwide recovery, compared to 2019 levels

In Continental Europe, the recovery strengthened, reaching 132%¹ in February vs. 125%¹ in January, fueled by a strong recovery in France (174%¹), Spain (134%¹) and Italy (131%¹).

In terms of origin markets, GCC shoppers benefited from the seasonal shift of the pre-Ramadan shopping acceleration, reaching 404%¹ recovery in February vs. 273%¹ in January. US shoppers also recorded a strong recovery rate this month, at 316%¹ vs. 290%¹ in January.

In Asia Pacific, the recovery rate remains strong at 159%¹ in February vs. 161%¹ in January, led by Japan (229%). The implementation of the Visa-Free policy for Chinese travelers in Singapore is showing the first signs of a positive impact, with a recovery reaching 74%¹ in February vs. 62%¹ in January.

Regarding origin markets, travelers from Hong Kong and Taiwan continue to lead the recovery, reaching 525%¹ in February vs. 426%¹ in January. Following behind are North East Asia travelers, with a recovery rate of 305%¹ in February vs. 242%¹ in January.

In terms of Mainland Chinese shoppers, the worldwide issued Sales in Store like-for-like recovery reached 98%¹ in February vs. 104%¹ in January. Within Continental Europe, Mainland Chinese shopper recovery reached 71%¹ in February, slightly below January levels at 80%¹, due to the 2019 Lunar New Year high basis of comparison. In Asia Pacific, Mainland Chinese shopper recovery remains strong, reaching 121%¹ in February vs. 127%¹ in January.

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 +32%² in February 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 +222%² growth rate in February 2024. Influenced by the pre-Ramadan period, GCC shoppers continued to show strong growth at +43%², while US shoppers’ Tax Free Spend reached +12%².

In Asia Pacific, the growth rate strongly accelerated, reaching +120%² in February 2024 vs. last year. All nationalities contributed positively, with Mainland Chinese shoppers leading the way at +350%² in February 2024 vs. 2023, North East shoppers at +118%² and Hong Kong and Taiwan shoppers at +54%².

APPENDIX

Worldwide recovery rate (versus 2019)

Issued SIS L/L recovery1 (in % of 2019)	% Tax Free Spend (2019)	February 2024	January 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023
France	22%	174%	164%	140%	138%	146%	147%
Italy	24%	131%	111%	123%	126%	128%	97%
Spain	14%	134%	153%	133%	127%	122%	114%
Germany	13%	71%	70%	74%	70%	77%	66%
Other countries	27%	127%	121%	111%	119%	121%	108%
Total Continental Europe	100%	132%	125%	118%	119%	121%	109%
Japan	54%	229%	232%	225%	185%	121%	98%
Singapore	42%	84%	85%	75%	84%	95%	74%
South Korea	4%	118%	131%	111%	116%	109%	73%
Total Asia Pacific	100%	159%	161%	150%	134%	111%	87%
TOTAL WORLDWIDE	100%	141%	135%	127%	123%	118%	101%

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

Issued SIS L/L Year-on-Year Growth2	February 2024	January 2024	CY (2023)
France	+21%	+11%	26%
Italy	+44%	+26%	25%
Spain	+52%	+31%	15%
Germany	+9%	+20%	8%
Other countries	+30%	+8%	26%
Total Continental Europe	+32%	+17%	100%
Japan	+170%	+100%	65%
Singapore	+36%	+15%	27%
South Korea	+138%	+108%	8%
Total Asia Pacific	+120%	+71%	100%
TOTAL WORLDWIDE	57%	+34%	100%

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, February 2024, Source: Global Blue

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¹ Recovery rate is equal to 2024 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/20240307482475/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?

Global Blue's latest data shows a strong global recovery in Tax Free Shopping, particularly in Continental Europe and Asia Pacific.

Which key markets show significant growth in Tax Free Shopping according to the data?

Key markets like France, Spain, Italy, GCC, US, Japan, and Mainland China exhibit robust recovery rates in Tax Free Shopping.

Who leads the year-on-year growth in Tax Free Shopping in February 2024?

Mainland Chinese shoppers lead the growth with a +222% year-on-year increase in Tax Free Shopping in February 2024.