It's Cheaper Now Than Ever to Buy These Luxury Goods in London Because of Brexit (2024)

FAQs

How has Brexit affected luxury brands? ›

According to the U.K. Fashion and Textile Association (UKFT) survey from 2021, 98% of U.K. fashion businesses experienced higher costs through bureaucracy and paperwork, 92% experienced increased freight costs, 83% increased customer costs, 53% saw canceled orders from E.U.

Most luxury goods are a bit cheaper in the UK than the US right now mainly due to the exchange rate and the fact that as a tourist you can get the VAT refunded.

Luxury shopping haven awaits you! 🛍

Luxury goods are often the lowest priced in the UK, German and France, so we can totally see why! Plus, with 90% of luxury goods manufactured in Europe (usually France or Italy), the items aren't shipped to faraway destinations, hence the lower costs.

Figures show that to trade clothing and footwear with the EU, it could cost businesses around £1 billion more yearly. Impacts can also be seen in the prices of clothing items, and we can expect to see a rise in pricing throughout fashion retailers.

The average Briton was nearly £2,000 worse off in 2023, while the average Londoner was nearly £3,400 worse off last year as a result of Brexit, the report reveals. * It also calculates that there are nearly two million fewer jobs overall in the UK due to Brexit – with almost 300,000 fewer jobs in the capital alone.

At least 30 per cent expect to reduce their spending across all categories. There is a greater consensus over the impact of Brexit on the price of goods and services, with a third of respondents expecting price rises across all categories.

According to a research by consulting and audit firm Deloitte, designer products and other luxury goods, including the much covetable Louis Vuitton handbags, now cost less in Britain (in dollars) than anywhere else in the world.

Recent research has shown that there are countries which tend to sell their designer products at a much lower cost, according to this research one Gucci handbag was cheapest being sold in the United Kingdom, at almost $1000 less than it was being sold in the USA.

Dior is typically cheaper in the UK compared to the US, as prices for European luxury brands are generally lower in Europe. You can check the exact prices in euros on Dior's website by changing the country.

Is it better to buy luxury goods in Paris or London? ›

U.S. tourists can get a much better deal on a new Louis Vuitton handbag in Paris than in London. It is becoming a problem for the British capital and its home-grown luxury brands.

Share of people who think Brexit was the right or wrong decision 2020-2024. As of March 2024, 55 percent of people in Great Britain thought that it was wrong to leave the European Union, compared with 34 percent who thought it was the right decision.

While recent data has shown that the impact of the UK's decision to leave the EU to the UK retail industry has been more moderate than expected1, it has come at a time when many retailers are trading on slim profits and declining sales as they get to know the new breed of consumer.

Our research highlights an alternative source: the trade policy uncertainty (TPU) associated with Brexit. Specifically, we find that uncertainty about the future trading conditions with the EU increased the UK's import prices from the EU-27, with the leave referendum raising those prices by as much as 10%.

While Brexit has made the movement of goods through established supply chains more challenging, slow, complex, and costly for retailers in the region, UK-based retailers with multi-country supply chains will be more affected compared to retailers with simpler UK-specific supply chains.

Nike has suspended its Reuse-a-Shoe recycling scheme in the UK as the recycling industry grapples with high costs related to Brexit.

New analysis released today (Wednesday 15 March, 2023) by the University of Sussex's UK Trade Policy Observatory (UKTPO), reveals that UK businesses are struggling with increased costs, labour and skill issues and supply shortages and issues following the UK's departure from the European Union.