Sterling’s fall to tempt big spenders to London

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London’s luxury goods brands could enjoy a short-term bounce from big-spending Asian tourists taking advantage of the weakened pound in the wake of Britain’s decision to leave the EU, a chorus of experts said today.

 Sterling slump: A weaker pound could lure foreign buyers to stock up on London's luxury goods such as Burberry Burberry
Sterling slump: A weaker pound could lure foreign buyers to stock up on London’s luxury goods such as Burberry Burberry

Michael Wainwright, managing director of diamond specialist Boodles, believes the capital will continue to pull in Chinese shoppers who, last year, spent an average of £742 per transaction here.

“London’s luxury market will still have a flood of Chinese and European shoppers coming here because it’s a jolly good time to take advantage of the weak pound and get a better price than overseas,” he told the Standard.

Luca Solca, luxury goods analyst at Exane BNP Paribas, said: “International luxury shopping is driven by foreign exchange moves, Brexit is the best thing for luxury sales prospects in the UK.”

Solca expects listed luxury giants Burberry and Mulberry to be among those to benefit.

China Luxury Advisors’ Philip Guarino added: “We believe the UK is still on an upward trajectory with respect to Chinese tourism.”

But Professor Qing Wang, a director at Warwick Business School, said Britain’s image as a welcoming place for tourists and businesses could be damaged and claimed top designers may leave London and go to Paris or Milan.

By Joanna Bourke Courtesy Evening Standard

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