February Report2019

intelligence

Contents

Tax Free Trends

Summary 03

Tax Free Sales Trends 05

Chinese New Year 2019 06

Tax Free Sales by Destination and Source 07

Top 5 Visitor Nations per Destination Country 09

Currency Trends 11

Planet International Calendar 12

Planet Intelligence | 2February Report 2019

Top 5 Source Markets

Top 5 Destination MarketsTax Free

Sales Turnover

Tax Free Sales Turnover

Vouchers/ Transaction

Vouchers/ Transaction

Avg. Transaction Values (ATV)

Avg. Transaction Values (ATV)

Arrival Numbers

Arrival Numbers

-14%

+10%

+5%

+18%

+5%

+10%

+33%

+25%

-18%

+17%

France

United Kingdom

Italy

Spain

Germany

China

Taiwan

USA

Russia

South Korea

-8%

+3%

+4%

+40%

-4%

+14%

+26%

+10%

-12%

+21%

-7%

+7%

+1%

-16%

+9%

-4%

+6%

+13%

-7%

-3%

-5%

+2%

+1%

+6%

+2%

-6%

+12%

+7%

-7%

+13%

Shopping & Arrivals Growth Summary - February 2019

+6%Total Vouchers

+2%Total Sales

-4%Total ATV

+2%Total Arrivals

Planet Intelligence | 3February Report 2019

Shopping & Arrivals Growth Summary - YTD

Top 5 Source Markets

Top 5 Destination MarketsTax Free

Sales Turnover

Tax Free Sales Turnover

Vouchers/ Transaction

Vouchers/ Transaction

Avg. Transaction Values (ATV)

Avg. Transaction Values (ATV)

Arrival Numbers

Arrival Numbers

-3%

+3%

+6%

+7%

-4%

France

United Kingdom

Italy

Spain

Germany

China

USA

Russia

Taiwan

South Korea

-5%

-4%

+7%

+26%

-7%

+2%

+7%

-1%

-15%

+3%

-5%

+2%

0%

+6%

0%

+1%Total Vouchers

+1%Total Sales

0%Total ATV

+1%Total Arrivals

+9%

+22%

-20%

+42%

+11%

+8%

+8%

-15%

+15%

+12%

+1%

+14%

-6%

+24%

-1%

+9%

+7%

-9%

+21%

+5%

Planet Intelligence | 4February Report 2019

OverviewFebruary marked the fifth consecutive month of growth in Tax Free shopping across Europe, with a 2% year-on-year increase in sales.

This is in line with the steady growth we have seen so far this year, with a 1% increase in Tax Free sales in January 2019 – and a significant improvement when compared with the 9% fall seen in February 2018.

Spain and the United Kingdom are this month’s best performers, posting 18% and 10% sales growth, respectively.

This time last year, both countries suffered significant double-digit losses, with each nation’s sales declining by 20%. In February 2018, Spain was still recovering from the effects of the Catalan Independence Referendum, while the UK faced a number of headwinds including a terrorist attack in September 2017, a weakened currency, and luxury goods prices becoming more aligned abroad compared with the UK.

Tax Free Shopping Sales Trends – February 2019

30%

25%

20%

15%

10%

5%

0%

-5%

-10%

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2018 2019Y/Y Sales Growth

France’s Yellow Jacket Protests Continue to Hamper Tax Free Shopping SalesFebruary was another strained month for Tax Free sales in France as a result of the Gilets Jaunes demonstrations.

While sales in France posted 5% year-on-year growth in January, this was not enough to level the sales figures in February, which took an adverse turn to -10% year on year. This mirrors the particularly poor December 2018, which also saw sales fall 10%.

The widespread media coverage of the Gilets Jaunes protests, which broke out in November 2018, has coincided with a sizeable decrease in international shoppers visiting popular shopping destinations in Paris.

According to the online news outlet Politico , much of the worst vandalism, rioting, and looting has been blamed on anarchists as well as hard-left and extreme-right militants with almost no connection to the protest movement. Nonetheless, nine out of 10 of Paris’ top shopping streets posted year-on-year Tax Free sales declines in December 2018, versus only three posting declines the previous month.

1www.politico.eu/article/yellow-jacket-protester-loses-fingers-in-violent-clash/

February Report 2019

Chinese New Year 2019 drives Modest GainsIn the two-week period leading up to and including Chinese New Year (29 January – 11 February 2019), Tax Free sales to shoppers from China, Taiwan and Hong Kong rose by 4% across Europe compared with the holiday period a year earlier.

Sales to tourists from Taiwan grew 27% during this year’s celebrations, a stark contrast to those from China and Hong Kong, who spent 1% and 17% less, respectively.

France and Germany were the primary beneficiaries of Taiwanese tourists, with France enjoying growth of 76% and Germany 25%. These gains saw Taiwanese nationals elevated to second in the ranking of source market spend in the month of February, surpassing sales to American and Russian tourists.

This year’s positive performance for Europe-wide Tax Free sales over the Chinese New Year period has been driven almost entirely by Italy, which saw a dramatic increase of 22% compared to the festival period last year; the fastest growth of the top 5 Tax Free Shopping destinations. This Windfall is likely due to the fact that holidaymakers may have preferred its relative lack of terror attacks compared with the other four key markets.

The ongoing Gilets Jaunes protests may also be behind the 17% decrease in Hong Kongese shoppers travelling to Europe in February. These nationals actually reported growth in four of the top five destination markets, but a substantial decline of 47% was seen in France.

Early analysis also suggests that this fall in Tax Free shopping sales may be driven by a reduction in Daigou – an overseas form of personal shopping – activity since new legislation was introduced earlier this year to prevent it. UK GermanySpain FranceItaly Total

Chinese New Year 2019 vs 2018 - Top 5 destinations

25%

10%

20%

5%

-10%

15%

0%

-15%

-5%

-20%

Sales Growth YOY Forms Growth YOY ATV Growth YOY

Planet Intelligence | 6February Report 2019

Sales Performance - February 2019By Destination By Source Market

-13.8%

+10.0%

+5.1%

+17.6%

+4.6%

+31.4%

+23.9%

+27.2%

+8.7%

-15.5%

+10.0%

+33.4%

+24.9%

-17.6%

+17.3%

-14.6%

+13.3%

-0.8%

+1.8%

+14.0%

FRA

GBR

ITA

ESP

DEU

AUT

PRT

CZE

IRL

CHE

CHN

TWN

USA

RUS

KOR

HKG

JPN

THA

UAE

KWT

Planet Intelligence | 7February Report 2019

Sales Performance - YTDBy Destination By Source Market

FRA

GBR

ITA

ESP

DEU

AUT

PRT

CZE

IRL

CHE

CHN

USA

RUS

TWN

KOR

HKG

THA

UAE

KWT

JAP

-3.3%

+3.1%

+5.7%

+6.6%

-4.1%

+9.2%

+4.5%

-0.7%

+6.3%

-18.5%

+9.2%

+22.3%

-20.2%

+41.7%

+11.5%

-24.1%

-0.5%

-2.1%

+5.9%

+18.5%

Planet Intelligence | 8February Report 2019

Top 5 Visitor Nations per Destination Country – February 2019

CHINA 41% € 1,645 -11%TAIWAN 7% € 1,955 +38%SOUTH KOREA 7% € 644 0%USA 6% € 1,216 +15%HONG KONG 4% € 2,915 -54%

CHINA 31% € 666 +81%TAIWAN 10% € 676 +211%RUSSIA 10% € 394 -21%SWITZERLAND 9% € 423 -9%UKRAINE 6% € 447 +6%

CHINA 35% € 444 +27%USA 6% € 647 +51%KUWAIT 6% € 332 +22%HONG KONG 6% € 499 +32%UAE 4% € 651 +10%

CHINA 44% € 2,410 +55%BRAZIL 16% € 430 -30%ANGOLA 15% € 457 +19%USA 6% € 3,021 +1,126%RUSSIA 2% € 549 -41%

CHINA 35% € 971 +6%RUSSIA 10% € 679 -11%SOUTH KOREA 8% € 646 +41%TAIWAN 7% € 1,160 +15%USA 5% € 1,105 +17%

CHINA 35% € 299 +103%TAIWAN 27% € 234 +57%RUSSIA 14% € 277 -29%SOUTH KOREA 4% € 177 -37%UKRAINE 3% € 411 +54%

CHINA 44% € 610 +41%SOUTH KOREA 6% € 283 +103%RUSSIA 6% € 358 -6%ARGENTINA 4% € 198 -32%USA 4% € 661 +29%

CHINA 41% € 824 +2%RUSSIA 9% € 494 -11%TAIWAN 5% € 421 +24%THAILAND 4% € 1,188 +18%HONG KONG 4% € 1,430 +96%

CHINA 27% € 1,367 0%UAE 10% € 4,669 -6%RUSSIA 7% € 1,248 -44%USA 6% € 1,575 +16%THAILAND 4% € 1,359 +42%

Share ShareTop 5 Top 5ATV ATVY/Y Sales Y/Y Sales

FRA

GBR

ITA

ESP

DEU

AUT

PRT

CZE

IRL

CHE

CHINA 53% € 448 -1%USA 17% € 208 +25%MALAYSIA 3% € 386 -26%HONG KONG 3% € 553 +157%UAE 2% € 549 +88%

Planet Intelligence | 9February Report 2019

Top 5 Visitor Nations per Destination Country – YTD

CHINA 37% € 1,802 +5%USA 8% € 1,297 +23%TAIWAN 7% € 2,472 +68%SOUTH KOREA 6% € 659 -2%HONG KONG 4% € 2,971 -54%

CHINA 22% € 654 +48%RUSSIA 14% € 409 -28%SWITZERLAND 9% € 415 -13%TAIWAN 8% € 665 +168%UKRAINE 7% € 444 -3%

CHINA 27% € 443 +11%KUWAIT 8% € 337 +9%USA 6% € 553 +29%UAE 5% € 578 0%HONG KONG 5% € 471 +13%

CHINA 30% € 1,980 +15%BRAZIL 22% € 416 -19%ANGOLA 20% € 471 +17%USA 5% € 1,857 +547%MOZAMBIQUE 2% € 394 +32%

CHINA 28% € 1,001 +1%RUSSIA 12% € 666 -11%USA 7% € 1,043 +18%SOUTH KOREA 6% € 666 +39%TAIWAN 5% € 1,166 +18%

RUSSIA 24% € 295 -33%TAIWAN 23% € 233 +39%CHINA 23% € 295 +54%SOUTH KOREA 4% € 183 -37%ISRAEL 4% € 196 -2%

CHINA 33% € 630 +29%RUSSIA 7% € 376 -14%SOUTH KOREA 6% € 302 +73%USA 5% € 630 +16%MOROCCO 4% € 254 -10%

CHINA 44% € 436 -2%USA 20% € 201 +18%AUSTRALIA 4% € 177 -6%MALAYSIA 4% € 321 -12%UAE 4% € 437 +74%

CHINA 36% € 781 -1%RUSSIA 11% € 449 -20%THAILAND 5% € 1,094 +19%TAIWAN 4% € 418 0%SWITZERLAND 4% € 355 +2%

CHINA 21% € 1,368 -27%UAE 10% € 3,503 +14%RUSSIA 10% € 1,240 -33%USA 6% € 1,537 -8%THAILAND 5% € 1,243 +45%

Share ShareTop 5 Top 5ATV ATVY/Y Sales Y/Y Sales

FRA

GBR

ITA

ESP

DEU

AUT

PRT

CZE

IRL

CHE

Planet Intelligence | 10February Report 2019

Currency vs Euro & GBP: Top Source Markets Currency movements: Last 52 Weeks

8.2

8.1

8.0

7.9

7.8

7.7

7.6

7.5

7.4

7.3

9.2

9.1

9.0

8.9

8.8

8.7

8.6

8.5

8.4

82

80

78

76

74

72

70

68

66

1.26

1.24

1.22

1.20

1.18

1.16

1.14

1.12

1.45

1.40

1.35

1.30

1.25

1.20

9.8

9.6

9.4

9.2

9.0

8.8

8.6

CNY > EUR CNY > GBPRUB > EUR

USD > EUR USD > GBPHKD > EUR

Planet Intelligence | 11February Report 2019

Normal traffic Medium traffic High traffic

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Brazil

China

Hong Kong

India

Indonesia

Japan

Malaysia

Middle East

Russia

South Korea

Taiwan

Thailand

USA

Planet International Calendar

Planning for international shoppers throughout the year

The following heat map has been designed in order to show the important travelling times of key Tax Free shopping nations. Used in conjunction with the major international calendar dates that are provided on the following page, you will be able to plan for the major international shopping periods throughout 2019.

Key Tax Free shopping months include July, which is the busiest Tax Free shopping month of the year, coinciding with summer holidays, as well as US Independence Day. October is also a major month for international shoppers, which sees a sharp increase in tourists seeking to enjoy Chinese National Golden week. August also sees a significant amount of spend, as many Middle Eastern inhabitants travel in order to celebrate the Eid al-Adha Festival.

Planet Intelligence | 12February Report 2019

July4 Independence Day (USA)4 Rath Yatra (Hindu)7 Star Festival (JPN)14 Republic Day (IRQ)15 Sea Day (JPN)16 Asalha Bucha (THA)17 Buddhist Lent Day17 Constitution Day (KOR)22 Sarawak Independence Day (MYS)28 King Vajiralongkorn’s Birthday

(THA)

August7 Chinese Valentine’s Day11-15 Eid al-Adha (Hari Raya Haji/

Bakr Id/Feast of sacrifice) (Islam)11-12 Mountain Day (JPN)12 The Queen’s Birthday (THA)15 Spirit Festival (CHN/HKG/TWN)15 Ghost Festival (JPN)15 Independence Day (IND)15 Raksha Bandhan

(Hindu/Sikh/Jain)17 Navroze (Parsi New Year) (IND)24 Janmashtami (Hindu)31 Merdeka Day

Independence Day (MYS)

September1 Day of Knowledge (RUS)1 Muharram / Al-Hijra

(Islamic New Year) 2 Labour Day (USA)2 Ganesh Chaturthi/Vinayaka

Chaturthi (Hindu)3 Armed Forces Day (TWN)7 Independence Day (BRA)9 The Yang di-Pertuan Agong’s

Birthday (MYS)10 Muharram/Ashura (Islam)11 Onam (Hindu)13 Mid-Autumn Festival

(CHN/HKG/TWN)14 Day after Mid-Autumn Festival16 Malaysia Day16 Respect for the Aged Day (JPN)23 Autumn Equinox

October1 Armed Forces Day (KOR)1-7 National Day and Golden Week

holiday (CHN)2 Mahatma Gandhi Jayanti (IND)3 Iraqi Independence Day3 National Foundation Day (KOR)5 Maha Saptami (IND)6 Maha Ashtami (IND)7 Maha Navami (IND)7 Double Ninth Festival (CHN)7 Dussehra (Hindu)9 Hangeul Proclamation Day (KOR)10 National Day/Double Tenth Day

(TWN)12 Our Lady Aparecida/

Children’s Day (BRA)13 Maharishi Valmiki Jayanti (IND)14 Columbus Day (USA)17 Karva Chauth (Hindu)23 Chulalongkorn Day (THA)24 Birthday of Sultan of Pahang (MYS)25 Taiwan’s Retrocession Day27 Naraka Chaturdashi (Hindu)27 Diwali/Deepavali

(Hindu/Sikh/Jain/Buddhist)28 Govardhan Puja (IND)29 Bhai Dooj (Hindu)31 Halloween (USA)

November2 Chhath Puja (Pratihar Sashthi/

Surya Sashthi) (IND)2 All Souls’ Day (BRA)3-4 Culture Day (JPN)4 Unity Day (RUS)9-10 Mawlid (Mouloud /The Prophet

Muhammad’s Birthday) (Islam)11 Double 11th Festival (CHN)11-12 Birthday of the Sultan of

Kelantan (MYS)12 Guru Nanak Jayanti (Sikh)15 7-5-3 Day (JPN)15 Republic Proclamation Day (BRA)20 Black Consciousness Day (BRA)20 Children's Day (UAE)23 Labour Thanksgiving Day (JPN)24 Guru Tegh Bahadur’s

Martyrdom Day (Sikh)28 Thanksgiving Day (USA)29 Black Friday (USA)30 Commemoration Day (UAE)

December2 National Day (UAE)3 National Day Holiday (UAE)18 National Day (QAT)24 Christmas Eve25 Christmas Day26 Boxing Day31 New Year ’s Eve

January1 New Year ’s Day2 New Year ’s weekend 2-3 Jan Bank Holiday (JPN)2-8 New Year Holiday Week (RUS)6 Iraq Army Day (IRQ)7 Orthodox Christmas Day (RUS)13 Guru Govind Singh Jayanti (IND)13 Lohri (IND)14 Makar Sankranti (IND) 14 Birthday of Yang di-Pertuan

Besar (MYS)14 Coming of Age Day (JPN)15 Pongal (IND)21 Martin Luther King Jr. Day (USA)21 Thaipusam (MYS)26 Republic Day (IND)

February1 Federal Territory Day (MYS)4 Chinese New Year ’s Eve (CHN)4 Farmer’s Day (TWN)4 Seollal Holiday (KOR)5 Chinese New Year5-6 Seollal (KOR)6-10 New Year Golden Week (CHN)10 Vasant Panchami (IND)11 National Foundation Day (JPN) 12 National Sports Day (QAT)14 Valentine’s Day18 Presidents’ Day (USA)19 Lantern Festival (CHN)19 Shivaji Jayanti (IND)19 Guru Ravidas Jayanti (IND) 19 Makha Bucha (THA)23 Defender of the Fatherland

Day (RUS)25 National Day (KWT)26 Liberation Day (KWT)27 Special Operations

Forces Day (RUS)28 228 Memorial Day (TWN)

March1 Maharishi Dayanand Saraswati

Jayanti (IND)1 Independence Day (KOR)2-6 Brazilian Carnival3 Dolls’/Girls' Festival (JPN)3 March bank holiday (QAT)4 Maha Shivaratri/Shivaratri (IND)4 Anniversary of Coronation of

Sultan of Terengganu (MYS)7 Hindu New Year 8 Int. Women’s Day12 Arbor Day (CHN)17 St. Patrick’s Day20 Holika Dahana (IND)21 Holi (IND)21 Dolyatra (IND)21 Hazarat Ali’s Birthday (IND)21 Nowruz (Persian New Year)29 Youth Day (TWN)23 Birthday Sultan of Johor (MYS)

April3 Ascension of the Prophet

Muhammad (Islam)3 Isra and Mi’raj (MYS)4 Children’s Day5 Tomb Sweeping Day

(HKG/TWN/CHN)5 Arbor Day (KOR)6 Chaitra Sukhladi (IND)6 Chakri Day (THA)8 Chakri Day (observed)13 Rama Navami (IND)13-16 Songkran (THA)14 Vaisakhi (Sikh/Hindu)14 Mesadi/Vaisakhadi (IND)14 Ambedkar Jayanti (IND)15 Tax Day (USA)15 Declaration of Malacca

as Historical City (MYS)17 Mahavir Jayanti (IND)19 Good Friday20 Holy Saturday21 Easter Sunday21 Tiradentes Day (BRA)22 Easter Monday27 Birthday of the Sultan

of Terengganu (MYS)29 Shōwa Day (JPN)

May1 Labour Day1 Spring and Labour Day (RUS)2-3 Spring and Labour Holiday (RUS)3 Constitution Memorial Day (JPN)4 Youth Day (CHN)4 Greenery Day (JPN)5 Cinco de Mayo (USA)5 Children’s Day (JPN)6 Ramadan begins (Islam)7 Pahang State Holiday (MYS)7 Birthday of Ravindranath (IND)8 Parents’ Day (KOR)9 Victory Day (RUS)12 Mother ’s Day (USA)12 Buddha’s Birthday13 Royal Ploughing Ceremony (THA)15 Teacher ’s Day (KOR)18-20 Buddha Purnima/Vesak

(Buddhist)22 Nuzul Al-Quran (Islam)27 Memorial Day (USA)30-31 Harvest Festival

(Pesta Ka’amatan) (MYS)31 Jamat Ul-Vida (IND)

June1 Children’s Day (CHN/RUS) 1 Pancasila Day (IDN)1-3 Gawai Dayak (Sarawak) (MYS/IDN)5 Eid al-Fitr (Eid-ul-Fitar/Ramzan

Eid/Idul Fitri/Hari Raya Puasa) (Islam)

6 Memorial Day (KOR)7 Dragon Boat Festival (CHN)9 Children’s Day (USA) 12 Russia Day (RUS)12 Brazilian Valentine’s Day (BRA)16 Father ’s Day20 Corpus Christi (Catholic)

Planet Intelligence | 13February Report 2019

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