Global Blue Releases the Monthly Tax Free Shopping Business Update for March 2023

In Continental Europe, the recovery reached 119%^[1] in March vs. 100%^[1] in February and 106%^[1] in January.

In terms of origin markets, the return of Mainland Chinese residents (25% of Continental Europe Sales in Stores in 2019) has been key to the strengthening recovery. Mainland Chinese shopper recovery reached 49%^[1] in March vs. 22%^[1] in February and 22%^[1] in January.

US shoppers are also contributing to the continued Sales in Store like-for-like recovery in Continental Europe, reaching 284%^[1] in March vs. 284%^[1] in February and 297%^[1] in January.

At the same time, the recovery level of Gulf Cooperation Council residents remains strong, despite the start of Ramadan, a period when they typically do not tend to travel. Gulf Cooperation Council residents’ recovery reached 264%^[1] in March vs. 286%^[1] in February and 224%^[1] in January.

Asian shopper recovery (excluding Mainland China) remains solid despite a softening of Indonesian and Malaysian shoppers linked to the beginning of Ramadan. South East Asia shopper recovery reached 145%^[1] in March vs. 175%^[1] in February and 153%^[1] in January.

In terms of destination markets, the acceleration in March was across all destinations, predominantly led by Greece at 176%^[1], France at 154%^[1], Spain at 133%^[1], Switzerland at 122%^[1] and Italy at 112%^[1].

In Asia Pacific, recovery reached 93%^[1] in March vs. 74%^[1] in February and 96%^[1] in January.

In terms of origin markets, the return of Mainland Chinese shoppers (56% of Asia Pacific Sales in Stores in 2019) has also been key to the strengthening recovery in Asia Pacific. In March, Mainland Chinese shopper recovery in Singapore reached 69%^[1] vs. 25%^[1] in February and 45%^[1] in January, whilst in South Korea, Mainland Chinese shopper recovery reached 59%^[1] in March vs. 36%^[1] in February and 46%^[1] in January.

With regards to the other origin market nationalities, Hong Kong and Taiwan residents have an elevated recovery level at 371%^[1] in March vs. 347%^[1] in February and 385%^[1] in January. This was followed by South East Asia residents at 155%^[1] in March vs. 149%^[1] in February and 133%^[1] in January.

Regarding destination markets, Japan is leading the Sales in Store like-for-like recovery, reaching 96%^[1] in March, with Singapore at 91%^[1]and South Korea at 80%^[1].

Since the reopening of China’s border in January 2023, air capacity recovery from Mainland China to key destinations has been gradually increasing.

In Continental Europe, air capacity recovery reached 22%^[2] in March vs. 18%^[2] in February and 10%^[2] in January. In Asia Pacific, air capacity recovery reached 14%^[2] in March vs. 10%^[2] in February and 9%^[2] in January.

On the back of this progressive air capacity recovery, we have seen a steady improvement in the Sales in Store like-for-like recovery in all markets. In Continental Europe, the recovery reached 49%^[1] in March vs. 22%^[1] in February and 22%^[1] in January. In Asia Pacific, the recovery reached 40%^[1] in March vs. 27%^[1] in February and 38%^[1] in January.Moreover, it is anticipated that the recovery of Mainland Chinese shoppers will continue to gain momentum in the second quarter, given the projected increase in air capacity^[2].

• Gulf Cooperation Council countries include: Kuwait, Qatar, Saudi Arabia, United Arab Emirates, Bahrain, Oman
• South East Asia includes: Indonesia, Thailand, Cambodia, Philippines, Vietnam, Malaysia, Singapore
• North East Asia includes: Japan, South Korea

[1]Recovery rate is equal to 2023 Issued Sales in Store divided by 2019 Issued Sales in Store, like-for-like (i.e.: at constant merchant scope and exchange rates).
[2]Air capacity: ForwardKeys data platform – March 2023