Leveraging Cross-Border Opportunities with Tax Free Shopping in France

The cross-border industry has become increasingly common in our globalized economy, driven by advancements in technology, transportation, and communication, as well as the liberalization of trade and investment policies in many countries. As a result, Tax Free Shopping emerges as a significant beneficiary of cross-border business activities:

It allows travelers the opportunity to save on purchases while boosting local economies and stimulating the retail sector.

Tax Free Shopping provides countries with a competitive advantage over neighbors with higher taxed products, attracting cross-borders shoppers and enhancing economic growth.

Main Hubs of Tax Free Shopping in France

In France, two key locations serve as strategic hubs for transnational business activities: the UK and Switzerland. The proximity between France and these countries has opened exciting opportunities for international trade, particularly for the Tax Free Shopping industry, as neither of them belongs to the European Union.

The Swiss frontier stands out as a key cross-border location in France for Tax Free services, with an average spend of €487 and over 58,000 transactions recorded, totaling more than €28 million sales in store^[1].

The French-British cross-channel business exhibits a similar average spend in Tax Free refunds compared to its Swiss counterpart, at €488. However, it records a lower share of Sales-In-Store (over €8 million)/ and transactions (+17,000)^[1].

For both the UK and Switzerland borders, Tax Free Shopping transactions carried out at the top 20 stores frequented by cross-border shoppers primarily involve consumer goods offered by merchants. However, Swiss shoppers show a preference for supermarkets and decoration stores, while the UK cross-border shoppers places more emphasis on food and wine^[1].

Meeting the Unique Needs of the Cross-Border Audience

The Tax Free services proposed to the cross-regional audience in France include savvy consumers that are familiar with its benefits. They prioritize securing the best deals to optimize their budgets and seek quick and effortless processes. Their expertise in the process allows them to navigate it seamlessly, seeking efficiency and convenience in their shopping experience, thus making them more inclined to return to the stores that offer Tax refunds in France.

Focus on the UK Borders: Calais

In the post-Brexit era, there has been a remarkable increase in British visitors shopping Tax Free in France, specifically in Calais. Strategically positioned between France and the United Kingdom, Calais has become a key gateway for cross-frontier trade, attracting a significant number of British shoppers, particularly for products like wine and food. 98% of Tax refund transactions in 2023 in Calais were done by UK shoppers^[1], highlighting the importance of the city for retailers in facilitating cross-border commerce.

Enhancing In Store Experience for British Shoppers at Calais Vins & Pidou

In 2023, at Calais Vins, a premium wine and delicatessen specialist, the majority of transactions had an average basket size exceeding €2501. With a focus on attracting more international shoppers, particularly UK Tax Free shoppers, Calais Vins aims to enhance the overall in store experience and cater to their specific Tax Free Shopping needs in France, including offering the best deals and ensuring a quick and effortless process. To achieve this, they have strategically implemented dedicated Tax refund corners in their store, employed English-speaking client advisors, and enabled payment in pounds. This approach allows them to adapt to the specific Tax Free Shopping needs of their international clientele.

I’m truly delighted with the collaboration we have established with the entire team at Global Blue. The support and follow-up we receive are exceptional, allowing us to stay informed about the data of our monthly transactions

Jérôme Pont

Owner of Calais Vins

Pidou Store, another renowned wine and daily food specialist in Calais, caters to a growing number of savvy cross-border shoppers, providing them with a seamless Tax Free Shopping experience. The partnership with Global Blue empowers the Pidou store to offer integrated Tax Free refund services, effectively addressing the unique needs of British Tax Free shoppers.

Thanks to the integration of our POS system with Global Blue's solution, the process of issuing Tax Free Shopping forms has become significantly faster. This not only saves time for our clients but also for us

Pidou Store Sales Advisor

The success stories of Pidou Store and Calais Vins underscore the importance of leveraging transnational opportunities and meeting the specific needs of cross-borders shoppers.

Calais Vins

Wine bottles displayed in a warehouse aisle

Pidou Store

Understanding the importance of providing a seamless and quick shopping experience for these savvy cross-border clients, Global Blue has invested in enhancing the digital infrastructure at key exit points in France. To this end, digital kiosks (Pablo) have been installed to facilitate stronger digital validation coverage and streamline the Tax Free Shopping refund process:

14 Pablo kiosks established on the Swiss border area.

25 Pablo kiosks placed in the northern border area between France and the UK, particularly in Calais and Coquelles.

These kiosks have led to higher digital validation rates, with UK citizens achieving a 95% digital validation rate in France and a remarkable 99%^[2] in the Calais/Coquelles area. For other nationalities, the average validation rate stands at 83%^[2], showcasing the overall enhancement in the digital experience for cross-border shoppers.

Thanks to Global Blue’s support, the Tax Free Shopping experience for cross-border travelers is greatly enhanced, driving more traffic and boosting business revenues.

We look forward to continuing to help our retailers with innovative solutions, providing a seamless Tax Free Shopping journey for global shoppers.

^{[1] Global Blue Data May 2023 – April 2024}

^{[2] Global Blue Data 2024}