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Burberry CEO Joshua Schulman has called on the government to reinstate VAT-free shopping for international visitors claiming it will help Britain become Europe’s top shopping destination once again.
Schulman told The Times that international consumers were “still not shopping in the UK to the extent that we would like” as a result of losing that perk.
He described the scheme’s return as “a real lever for growth” and a “great opportunity for the UK to become the No 1 shopping destination in Europe”.
He claimed that the return of the scheme would benefit luxury brands which have struggled to compete with European rivals who continue to offer such benefits.
The VAT refund scheme allowed consumers to claim back the 20% VAT paid on goods bought in the UK but was scrapped in 2021 after the UK’s exit from the European Union.
A Treasury spokesperson confirmed that there were “no plans to introduce a new tax-free shopping scheme in Great Britain” but highlighted ongoing efforts to boost tourism through a forthcoming national visitor economy strategy.
It comes after the company saw its revenue fall 6% to £433m in the 13 weeks ended 28 June, as it stated it was seeing “early progress” on its turnaround plan. Alongside this, the company saw its comparable store sales fall 1% compared with a 21% decline last year.
The slowing of the decline was aided by a 4% and 1% increase in comparable sales in the Americas and EMEIA caused by new customer growth. This increase helped Burberry to offset a 5% and 4% drop in Greater China and Asia Pacific.
Schulman said: “Over the past year, we have moved from stabilising the business to driving Burberry Forward with confidence. The improvement in our first quarter comparable sales, strength in our core categories, and uptick in brand desirability gives us conviction in the path ahead.”
