London’s prime central shopping district had muted growth of just 0.25% year-on-year in the key shopping months of November and December.
Domestic spend dropped by 2.2%, requiring an increase of 3.5% in spending by international visitors to offset the drop, according to the latest data from the New West End Company.
The take from international shoppers could have been even higher though, says the group, which represents 600 retail, restaurant, hotel and property owners in the district.
Its analysis suggests the West End would have taken another £640m in revenue had tax-free shopping for international visitors still been in place. This was up from an estimated £400m loss last year. International spend remains below pre-pandemic levels even though visitor numbers are now higher than they were before the outbreak.
“The Government has just announced support for Heathrow’s third runway. And yet policies like lack of tax-free shopping remain stumbling blocks in their growth agenda,” said New West End Company chief executive Dee Corsi.
“We need bold action to unlock the full potential of international spend, if we are to recover to pre-pandemic levels and achieve growth.”
Visitors from the US, Saudi Arabia and Germany were the top international shoppers.
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