London trails Paris and Milan due to end of VAT-free shopping says Harrods boss

01-01-23

London is losing the race against Paris and Milan when it comes to attracting exclusive luxury goods and the highest-spending shoppers, the boss of Harrods has said.

In an interview with The Telegraph, Harrods MD Michael Ward said that the reason is the abolition of VAT-free shopping for tourists, almost two years ago, which has deterred luxury shoppers from visiting the British capital to spend their cash.

He said that the luxury department store is having to work a lot harder in order to source designer goods that shoppers can't get elsewhere.

The ability of tourists from countries outside the EU to claim back their VAT at the airport was a crucial factor in attracting many of them to shop in Britain before the abolition of the perk at the start of 2021.