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Eurozone bargain hunters flood into West End
Jonathan Prynn and Benedict Moore-Bridger12 Jan 2009
SHOPPERS from countries in the eurozone are swarming into the West End following the collapse of the pound.
Many retailers say takings from eurozone visitors were up by 100 per cent last month and they expect the trend to continue this year.
Sterling lost 24 per cent of its value against the euro last year and, despite a minor rally last week, the capital remains remarkably cheap for most foreign visitors. It ends its reputation as one of the most expensive cities, a turnaround widely reported by European broadcasters and newspapers.
The exchange rate, combined with the biggest New Year sale reductions on record, mean prices can be 70 to 80 per cent what visitors would pay at home.
The visitors are coming from nations such as Germany, Italy, Spain, and Ireland. Store managers said they were thrilled by the surge of high spenders who seemed less wary of recession than most Britons. Noel Saunders, managing director of John Lewis in Oxford Street, said: "One customer ordered a suite of furniture and when asked if she would like it delivered, she said, 'Yes please, to my private jet at Heathrow airport'."
A spokesman for fashion store Browns in South Molton Street said: "The most bizarre trend we have seen is an influx of Parisians travelling to London to buy French brands."
A spokesman for Selfridges said one Italian flew in to buy his wife a £45,000 earrings and necklace jewellery set from Bulgari - an Italian brand. He told staff that he had worked out it would be cheaper than in Italy.
Eurostar reported a 15 per cent rise in the number of people travelling to London since last month.
Aude Criqui, of the train operator, said the surge in passengers was "directly linked" to the weakening pound: "The pound was always very strong and it was harder for people to go to London, now it is much cheaper."
The phenomenon - which has helped insulate central London from the worst of the high street downturn - is not limited to European visitors. The dollar rose 26 per cent against sterling last year, and many Middle East currencies appreciated by similar amounts. Of major currencies only the South African rand fared worse than sterling.
Richard Dickinson, chief executive of New West End Company, which represents traders in Oxford Street, Regent Street and Bond Street, said sales to visitors from long-haul routes were 43 per cent higher than in December 2007.
Countries of origin included America, the United Arab Emirates and Nigeria. He said: "What we are getting from shops is that they have never seen anything like it in terms of foreign speakers." Many restaurants and hotels have also picked up valuable trade. Russell Norman, operations director for Caprice Holdings, which owns the Ivy, Scotts and J Sheekey, said: "A strong element of our customer base is European, and they stay in hotels where we are fortunate to have very good relationships with concierges. It gives the restaurants an international feeling - it is win-win for us."
But retailers in some European capitals have said London's "euro bubble" is draining their stores of customers. Brussels is said to have been badly hit as it is only two hours by train from St Pancras and its limited range of designer stores cannot match the West End.
Michel Van Hoonacker, director of the Belgian-Luxembourg Chamber of Commerce in Great Britain, said: "Until recently London was becoming far too expensive. Now all you read about in the Belgian press is how London is suddenly affordable.
"People want to take advantage of the weak pound. People are excited about it. Unfortunately for Belgians working here, they have seen the value of their salaries slashed by about 30 per cent."
Reader views (9)
Martin - "Eurozone" and "Europe" are two different things. Europe is a continent. Of which Britain is a part of. "Eurozone" is an area in which the Euro is used as the primary form of currency. Of which Britain is not a part of. And Georgie - if we adopted the Euro, we wouldn't have the issue of unaffordable European travel...
- Mark Lee, Vauxhall, 13/01/2009 09:34
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The end of the pound sterling. Joke of financial markets. Brits can stay at home.
- Jacqueline, Hampstead, London, 12/01/2009 18:41
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Who cares if the pound is worth nothing? Having a piece of paper with a picture of our glorious monarch on it is much more important than practical day-to-day economics. God Save the British Empire!
- Mark Jackson, London, UK, 12/01/2009 14:33
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It's good to see foreign money coming into our country at this time of recession. These are the benefits of not being stuck with the Euro and a single interest rate.
- Ian, Surbiton, 12/01/2009 14:25
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Whatever is this 'Eurozone'?
If you mean Europe, it's called Europe.
PS Kent is the most under-rated county in the England zone.
- Martin H Watson, Teddington, 12/01/2009 14:02
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How much more can we become such a joke Crash Gordon go away!
- Win, London, 12/01/2009 12:53
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I came over to the UK in December and couldn't believe how cheap everything was including food, drink and fuel. We are coming back to buy food, clothes and furniture this month as even with the shipping costs the savings are massive.
- Casper Slides, France at the moment, 12/01/2009 12:16
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Kent should be taking this opportunity to sell it self to the French, Dutch and Belgians.
- Dave Davies, Basingstoke, 12/01/2009 11:21
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At least they have a strong currency - in fact most developed countries currencies are now better liked than the poor British economy. The poor Brits have to stay at home this year - no more affordable foreign travel for us...
- Georgie, London NW1, 12/01/2009 11:16
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