Retail surgery: How can I maximise sales from overseas visitors to my store?

Tax-free shopping, which allows consumers from outside the EU to claim back VAT on their shopping, is now a major source of retail revenue in the UK and continues to grow.

Individual retailer success in this sector relies on good management of this valuable source of revenue - 30% of sales generated at Burberry’s flagship London store are to overseas visitors. Global shoppers also spend around four times more than locals at high street retailers.

Geoff Barraclough, head of corporate propositions at payment service provider WorldPay, says that retailers must offer Dynamic Currency Conversion (DCC), which converts credit card holders’ transactions to their local currency, to maximise sales from international customers. He adds: “By offering tax-free shopping, you offer customers better value with no effect on product price, a significant advantage in a domestic market that is hugely promotions-driven.”

London is the second most valuable tax-free destination after Paris by amount spent. And, while London attracts a huge proportion of tourist spend, other UK cities benefit too. Edinburgh, York and Bath are all popular, and Bicester Village in Oxfordshire has become a key destination for bargain-hunting tourists.

In addition to DCC, it’s important consumers are also able to pay through multiple devices and services, including traditional point of sale, kiosks, and mobile PoS.

Retailers must ensure they are using the payment methods that customers are increasingly comfortable with – and demanding.