London losing out to Paris and Milan over tourist shopping

17-07-23

Burberry has reported a sales surge of almost a fifth thanks to a bounceback in China, but the luxury British fashion brand has warned that London is losing out to rivals such as Paris and Milan, which are enjoying a stronger tourist shopping boom.

The brand, best known for its signature check bags and raincoats, said that global sales grew 18% year on year to £589m in the quarter to 1 July – its fastest growth rate in two years.

The company pointed to a strong sales recovery in mainland China, which suffered from Covid-19 related lockdowns last year, where sales rose 46% year on year. However, the US was a weak spot, with the Americas region reporting a sales decline of 8% year on year in the quarter.