Mulberry Closes Iconic Bond Street Store: Axing Of VAT-free Shopping A Major Factor

Source: Photo by freestocks on Unsplash

Mulberry has closed its iconic Bond Street store, citing the axing of VAT-free shopping as a major factor in its decision. 

Back in December 2022, Mulberry's CEO Thierry Andretta stated that the Government's move to end tax-free shopping has hammered trading in the capital, particularly its iconic Bond Street store. In an Industry.Fashion article, Andretta stated:

“Some wealthy people now prefer to go shopping in Paris or Milan or other capitals – it’s really hitting us. The wealthy are still buying but they’re not choosing to buy in London. (VAT-free shopping) is something we would like the Government to reinstate."

Former chancellor Kwasi Kwarteng, axed VAT-free shopping for tourists in January 2021, only to reintroduce this in the mini-budget. However, chancellor Jeremy Hunt has since U-turned on this decision and has reversed the planned reinstatement. 

Here at Fashion Roundtable, this is a big concern and we have already presented MPs with questions to take to Parliament.  Our recent Treasury Report, powered by ACS, focused on key issues around VAT and is linked below. 

If you have any further evidence of how this has impacted your business, we urge you to get in touch below.