The UK’s mass-market retailers have sometimes been unsure of how best to attract greater numbers of international shoppers to their stores.

The UK’s mass-market retailers have sometimes been unsure of how best to attract greater numbers of international shoppers to their stores.

Tourists from relatively new markets such as China and Russia are spending big these days in ever greater numbers, despite the fact that those from the US and Europe still contribute the majority of international spending here.

Now there’s another segment to watch out for: cash-rich shoppers from the Middle East – and they could be about to drop a fortune in your store if you prepare properly.

According to tax-free shopping company Global Blue, the average tax-free spend per Qatari in the UK in May was a whopping £1,547 – the most of any country surveyed.

Shoppers from the UAE (£1,015) and Saudi Arabia (£961) were not far behind, forming a Middle East 1-2-3. Kuwaitis (£593) are also among the top 10 tax-free spenders.

May was one thing, but the most prolific period of retail activity is happening now. Known colloquially by some traders as the ‘Ramadan rush’, it’s the period just before and after the Islamic holy month of fasting – which this year runs from June 28 to July 28.

Last year WorldPay recorded impressively large spikes in inbound tourist spending from Middle Eastern shoppers in the immediate run-up to Ramadan, and during the Eid holiday that marks the end of the holy month.

Eid typically sees a greater volume and average sale size as wealthy visitors fly into London and other major tourist destinations for some retail therapy.

So why the UK? Well, despite our natural predisposition to undersell our country, we rate pretty highly in the global soft power stakes.

“Tax-free shopping is a no-brainer, but how about listing those tax-free prices in-store?”

Dave Hobday, managing director, Worldpay UK

Internationally renowned sporting events and cultural attractions have helped burnish the UK’s appeal. More importantly, luxury fashion brands such as Burberry, Aquascutum and Barbour have all added to the allure for international shoppers. That’s not to mention the helping hand of the Government in allowing those from outside the EU to shop here tax-free.

The Ramadan rush represents a fantastic opportunity for UK retailers to grow their takings. Yes, the majority of spend from the Middle East will be in London and at luxury outlets, but a trickle-down effect means other major regional centres and retailers can benefit too. It all boils down to knowing your customer.

Tax-free shopping is a no-brainer, but how about listing those tax-free prices in-store? Perhaps consider employing multilingual staff and improving foreign language signage.

Digital marketing campaigns on foreign social media sites can also help build relationships with prospective shoppers
before they’ve even arrived in the UK.

Another great way to improve the shopping experience is dynamic currency conversion, which gives international customers the choice of paying in their domestic currency. Retailers benefit too by getting a share of the foreign exchange conversion.

Get some of these basic steps right and it won’t just be Middle Eastern shoppers celebrating this coming Eid.

  • Dave Hobday, managing director, Worldpay UK