Revive VAT-free shopping to boost high streets, Selfridges urges Burnham
Selfridges has called on Andy Burnham to reinstate VAT-free shopping for international tourists as part of his push to revive British high streets and boost regional growth.
The luxury department store chain hit out at then-Chancellor Rishi Sunak’s decision to abolish VAT-free shopping in 2021, adding that it is “encouraged” to see the policy back on the agenda.
André Maeder, Selfridges Group’s chief executive, said that “difficult retail and macroeconomic environments” have been made “more difficult by policy choices, such as the abolition of tax-free shopping for international visitors.”
He added: “We are therefore hugely encouraged to see this back on the political agenda and urge the government under new Prime Minister, Andy Burnham, to bring back tax-free shopping, boosting high streets and unlocking growth across the whole of the UK.”
Burnham is facing significant pressure from luxury brands, including listed fashion house Burberry and bagmaker Mulberry, to reinstate tax-free shopping for tourists.
Earlier this month, business leaders welcomed the Conservatives’ pledge to bring back the policy if they re-enter government.
Writing in City AM, shadow Chancellor Andrew Griffith said the return to tax-free shopping would allow the UK’s “retailers, hotels, restaurants and attractions to put their best foot forward”.
Bosses from hospitality and retail giants including Fortnum & Mason, Fullers, Claridge’s – alongside TV chef Angela Hartnett – praised the move.
They said: “As some of the leading businesses in tourism, retail and hospitality, we welcome this pro-growth, pro-jobs announcement from Kemi Badenoch and her team.
“With its heritage and the quality of our products and service, Britain is well placed to compete with the world’s finest destinations.”
Selfridges online sales slip
The comments came as Selfridges posted an 88 per cent jump in profit to £24m last year, as revenue across its four UK locations grew by seven per cent to £831m.
Selfridges said its profit growth was helped by its shift in focus towards selling higher-margin products. Revenue across the group, including sales from brand partners, came in at £1.6bn.
The group’s push towards selling more profitable products caused a dip in its online sales, but the department store chain highlighted its efforts to improve the experience at its sites in London, Birmingham and Manchester.
Selfridges was sold by the billionaire Weston family, who own Primark and AB Foods, for £4bn in 2022. Thailand-based retail conglomerate Central Group owns 60 per cent of the company while Saudi Arabia’s Public Investment Fund owns 40 per cent.