Superdry co-founder and chief executive Julian Dunkerton has warned that people are opting to travel to Europe instead of the UK to go shopping following the end of tax-free shopping.
Dunkerton told The Times the decision to not reinstate the scheme that allows international visitors to reclaim 20% VAT is a “self-inflicted wound”.
He claimed the international market was “being put off by not allowing VAT relief. I can go to France and get VAT relief on clothing, but somebody from China can’t come to the UK and get VAT relief on clothing. What a ridiculous situation.”
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This is not the first time Dunkerton has raised concerns over the end of tax-free shopping, which prime minister Rishi Sunak scrapped in 2020.
The Superdry boss warned in 2022 that high-spending international visitors would stop coming to spend their money in the UK, adding: “They’re going to go to France instead of us to do all of that luxury shopping.”
He is the latest retail executive to blast the government over its decision not to reinstate the VAT-free shopping scheme.
Earlier this week, Harrods managing director Michael Ward said he did not expect the scheme to be reintroduced anytime soon as the prime minister geared up for a general election.
“Is Sunak, ahead of a potential election, going to admit that he totally [messed] up the VAT system? I am not a politician, but I think the chances of that are relatively thin,” he said.
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