Brand says move to install 20% VAT will encourage 1.2m visitors to shop in Europe instead
Burberry has warned that the government’s plan to scrap tax-free shopping will rob the British luxury brand of its “home market advantage” on the eve of Brexit, as wealthy international tourists opt to holiday in mainland Europe instead.
Julie Brown, the chief operating officer of Burberry, said foreign tourists, who traditionally accounted more than half of its UK sales, could “turn to buying in Europe … This represents a challenge as we could lose our home market advantage competing against brands in Paris and Milan,” she said.