A couple of Months ago, British people voted to leave the European Union. Luxury retailers, as well as contemporary retailers and other businesses, have since expected sales and profits to decrease because of the Brexit. Now, it seems as if luxury retail sales have increased instead as British people are spending more.
According to an article on The a Fashion Law, decreased prices from the Brexit has made retail sales increase by 1.4% after a 0.9% decrease in June. The sales increase was much more than the 0.2% increase that people expected in a poll on Reuters about the sales.
This increase, of course, includes spending done by tourists.
The decrease in the British pound has made both vacationing and shopping in The UK cheaper. Tourist have been going on shopping sprees with decreased prices on luxury items.
Sales of luxury watches and jewelry were up by 16.6% in July compared the same time last year.
Joe Grice, Chief Economic Advisor at the Office of National Statictics, says,
“these are strong numbers showing a pronounced increase in sales compared with last July. Better weather this year could be a major factor with sales of clothing and footwear doing particularly well. There is also anecdotal evidence from respondents suggesting the weaker pound has encouraged overseas visitors to spend. Department stores and specialist retailers like jewellers are among those reporting a good month.”
The ONS sales figures could decrease, though. The Bank of England will want to see more than a month of sales before making any conclusions about them.
Compared with a year earlier, overall sales in July have increase by 5.9%, more than the 4.2% increase that was expected.
So, what do you think? Will luxury retail sales decrease? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me on Facebook, Instagram, and Snapchat.
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