Russian spending in UK drops by 17%

Russian spending in UK shops fell by 17% last month amid escalating political tensions over the Ukraine and a slide in the value of the rouble, figures showed today.

Visitors from Russia remain one of the biggest spending groups among foreign shoppers, splashing out an average £669 per transaction, according to the survey by Global Blue.

But the fall in tax free spending in the UK in February compared to the same month in 2013 saw them drop to fourth place behind Nigeria.

Gordon Clark, UK country manager of Global Blue, said: “The unstable situation in Russia has shown its effect on tourism spend this year as the weakening economy leaves shoppers disinclined to travel.

“However, Russia is still one of the top globe shopper markets in the UK as high net worth individuals are drawn to the UK’s extensive offer of luxury brands, so businesses should renew their emphasis on strategies to entice these individuals and encourage high level spend.”

The firm, which works with retailers, shopping brands and hotels to help provide tax-free shopping for overseas visitors, said while the growth in Russian tourism may slow in the near future, the long-term forecast was positive.

Spending by visitors from the country was up 16% for the year in 2013, and many UK luxury retailers have been introducing services to attract them, including Russian-speaking staff and private opening hours.

Meanwhile, for last month spending by Middle Eastern shoppers was up 31% and by those from China up 23% as they continued to represent the highest proportion of international sales.