Britain has become the cheapest luxury goods market in the world! In the wake of Britain’s vote to leave the EU, which pushed down the value of the pound 10% against the euro, British luxury labels have are now more affordable. Luxury goods companies are not expected to raise prices in the UK in the coming months until there is more clarity around Britain’s exit from the EU. Due to its weakened currency, Britain should see a boost in tourism and spending, and coupled with the recent terror attacks in France, the UK could see a tourist spending boom!
Luxury goods sold in Europe are amongst the cheapest in the world, costing less than in the US and significantly less than in Asia, where luxury goods are most expensive.
Increased tourism and lower prices in the UK will boost British luxury brands like Burberry, Mulberry and Jimmy Choo, which have higher store counts in the country. Four and a half percent of Burberry’s total stores are located in Britain, including its largest flagships, so the company should experience a significant increase in sales, especially as it report its profits in pounds. Likewise, Mulberry and Jimmy Choo, which are dependent on the UK market, should also see a boost.