European retailers enjoy 6% growth in sales to Chinese shoppers during Golden Week

Chinese tourists celebrated the annual Golden Week holiday with a European shopping spree, as retailers enjoyed a 5.8% spike in sales compared with the same period last year. Golden Week is a major national holiday in China and offers incredible opportunities for retailers looking to capitalise on the festivities. Data from international payment processing company Planet also revealed that the average transaction value among Chinese shoppers was up by 10.5% this year as China’s love of luxury brands continues to fuel big spending in Europe.

France enjoyed the highest growth in sales from Chinese shoppers across all major European markets, seeing a 13.6% rise from 2017. This points to a broader trend on France’s popularity with international shoppers, with the latest Planet Intelligence data revealing a 11% rise in tax free sales across September – the largest across Europe that month.

Chinese shoppers have been making headlines this year, most recently when Gucci owner Kering reported robust sales growth – a trend they claim was driven by demand from Chinese consumers. Tourists from China are consistently among most profilic spenders in Europe, with the first nine months of 2018 seeing an 11% rise in average spend per purchase. During Golden Week, Chinese shoppers in France spent an an impressive average of €1,715 per transation.

According to the UN’s World Tourism Organisation, Chinese tourists spend more abroad than any other nation, parting with over $260 billion worldwide in 2016 – more than double the expenditure of second-placed United States.

Despite a slightly weaker currency and subdued domestic growth compared with Golden Week last year, tourists from China continue to make up the highest portion of Tax Free sales across all major European markets – accounting for a monumental 42% of September Tax Free sales in Germany, 32% in France and Italy, and 27% in the UK.

“For European retailers, 2018 has been all about the Chinese shopper, and Golden Week sales data does nothing but confirm that. A slowing Chinese economy has had little effect on purchasing power, as our data show consistent growth in sales and average transaction value of Chinese tourists this year. They are a critical customer to engage with for retailers looking to capture international spend, which is now a crucial source of revenue for businesses,” said David Perrotta, UK Country Manager, Planet.

While mainland European destination markets enjoyed healthy increases is sales to Chinese shoppers during Golden Week, the UK witnessed a marked decline in sales, falling by 14.8%.

“While our retail sales data across Europe show Chinese shoppers spend significantly more than the average tourist, the subdued growth in the Chinese economy and marginally weaker yuan may be forcing its consumers to be more considered with their spending. The additional, costly visa required to enter the UK from the EU could be deterring Chinese tourists from choosing to make the trip across the Channel – instead opting to spend their money on purchases in other major European destinations such as France and Italy. Policy makers need to take serious note of this if the UK wishes to retain its position as one of the leading retail destinations for international shoppers,” said David Perrotta.

Tourist arrival forecasts suggest that the spending among Chinese shoppers could be set to continue, with data from ForwardKeys pointing to a 2.8% increase in non-EU tourist arrivals for Q4, compared with the same period last year. Arrivals from Chinese shoppers are expected to grow across all major European markets, providing clear opportunities for retailers. UK retailers are set to be among the biggest beneficiaries, with predictions of a 8.4% rise arrivals from China across the fourth quarter of the year.

For more insights from Planet read the latest Planet Intelligence report here.