he UK boss of Pandora, the world’s largest jewellery brand, has said bringing back VAT-free shopping could offer a significant boost to the retail sector and the economy as a whole.
Rasmus Brix is general manager for the UK & Ireland at Pandora, which has over 200 shops in the UK, including 13 in London.
He told the Evening Standard that such a move (reinstating VAT-free shopping) could help “to offset some of the disruption we’re seeing on high streets as a result of the weather, cost of living crisis and ongoing train strikes”.
Scores of retailers have warned the 2021 axing of duty-free shopping is detrimental to London and other regional cities. The Treasury has said the scheme could cost British taxpayers around £2 billion a year.
Brix said Pandora is not necessarily concerned with footfall, but “we do believe that without the tax-free benefit in place we are missing out on the bigger spending opportunities that come with inbound tourism. In particular, this applies to higher ticket items and the average basket value”.
The comments came as the Copenhagen-headquartered group, famous for its charm bracelets and whose goods have been worn by celebrities such as actress Jennifer Lawrence, published its global second quarter results.
Pandora said revenue reached 5.9 billion DKK (£680 million), up 2% on a like for like basis. It raised its full-year organic revenue growth outlook to 2% to 5%, up from -2% to 3%.
Chief executive Alexander Lacik said: “We are pleased with delivering yet another solid quarter against a backdrop of macroeconomic uncertainty.”
Popular items in Britain during the period included charms, a birthstone collection and collaboration lines such as The Little Mermaid jewellery.
Lab-grown diamonds are also becoming more popular. Pandora which does not used mined diamonds, first launched a lab-grown range in 2021 and has been rolling out products since then.
The retailer said three new collections of jewellery with diamonds created in a laboratory will be in stores at the end of the month.