What: Tax-free shopping in department stores has exceeded pre-COVID levels, with notable shifts in shopper demographics and nationalities. In 2024, spending on apparel and jewellery is rising across many markets, with experiences remaining a key factor. The IADS explored these trends through presentations by Global Blue and Mastercard.

Why it is important: Recognizing the changing profiles and spending behaviours of international shoppers is vital for department stores to adjust their marketing strategies and improve the overall shopping experience, especially in the area of tax-free shopping.

The report discusses how tax-free shopping in department stores has exceeded pre-COVID levels, driven by changing consumer demographics and spending habits. Gen Z and Millennials now make up a larger portion of shoppers, with luxury spending also increasing among high-net-worth individuals (HNWIs). The report highlights key differences in shopping patterns across regions, noting a slower return of Chinese shoppers to Europe but a significant rise in U.S., Latin American, and Gulf Cooperation Council (GCC) nationals. Department stores are focusing more on providing unique experiences, with services such as personal shopping and dining playing a critical role in attracting international customers. Mastercard’s insights show a shift toward experiences over goods in consumer spending, alongside increased use of AI and digital solutions to personalise offerings.

Global Blue & Mastercard reports – How do consumers shop in 2024?