// Harrods boss Michael Ward says London is behind other European cities in luxury retail trade
// The managing director said the UK’s decision to stop tourists reclaiming VAT has resulted in people travelling to other cities such as Paris and Milan
Harrods boss Michael Ward has warned that London is trailing behind Paris and Milan in luxury trade.
The managing director, who has led Harrods since 2005, said the decision to stop tourists reclaiming VAT has deterred them from shopping in the city. The UK scrapped this measure after exiting the EU at the end of 2020.
Meanwhile, other European countries such as France and Italy, both still allow international shoppers to claim VAT back.
Ward said Harrods is forced to work much harder to source designer goods which shoppers can not find in other European capitals, The Telegraph reported.
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Ward said if he was going to buy a Christian Dior saddlebag for £2,000, then he would likely purchase it in Paris.
“We’ve got to make it up by being smarter in what we’re offering to that customer. We want more exclusive products, so that they can’t buy the same thing in Paris,” he said.
Ward has urged the government to work on attracting tourists to London in an effort to put it ahead of other European cities.
Ward added that he will “shut up” if he’s proven wrong about VAT-free shopping.
“All we want is the government to do what they did with all other aspects of the Budget. Let’s just have an independent review into it,” he said.
Meanwhile, Kurt Geiger boss Neil Clifford has criticised the UK for scrapping VAT-free shopping for international tourists, saying he was “immensely disappointed” with the decision.
Clifford, who has led the brand for 19 years, said post-Brexit Britain should be “open to the world”, This is Money reported.
He warned that Brits are visiting European countries to take advantage of the tax break.
