Tourists profit from plummeting pound, latest figures from Worldpay show

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As the pound hits a 31-year low, UK retailers continue to take advantage of the post-Brexit climate as international consumers flock to bag a Great British bargain, according to the latest figures from Worldpay.

In the ten weeks following the referendum, growth in foreign card spend has increased by 5.8% compared to previous 10 week period.  Whilst 6% of this growth increase was witnessed by traditional bricks and mortar retailers, online sales also jumped by 2% over the same period.

Worldpay’s data also shows an increase in average value transaction on foreign cards. Here online retailers have seen the biggest boost, with average basket values up by 15.7%, reaching £132.91. Meanwhile, foreign visitors to UK high street retailers spent an average of £45.61 per transaction, a rise of 14.7% compared to pre-Brexit spending.

Dave Hobday, UK managing director, Worldpay, said: “With overseas visitors looking to capitalise on the weaker pound, retailers up and down the country are set to benefit from a post-Brexit boom as a result of ongoing currency fluctuations.”

Hobday continued: “There are clear opportunities for businesses to thrive in the post-referendum environment – the time is ripe to export, but it is vital that business owners take action. By continually investing to make their businesses more attractive to global customers, UK retailers could make serious gains from the pound’s performance. Careful, strategic thinking and a multi-channel approach will enable businesses to capitalise on the current demand for British products, and make their mark overseas.”

The low down on the data:

Analysis of non-UK card transactions processed by Worldpay among UK based retailers (online and in-store). Percentages have been calculated on the basis of comparison between the rate of year on year growth in the period prior to the referendum (16 April – 23 June) and the rate of year on year growth in the period post the referendum (24 June – 31 August).

  YoY volume Growth Pre-Brexit

(16th April – 23rd June)

YoY volume Growth Post-Brexit

(24th June – 31st August)

% change

(Growth Swing)

Foreign card spend on the high street 21.0% 27.0% 6.0%
Foreign card spend online 8.3% 10.3% 2.0%
Foreign card spend  overall 19.5% 25.3% 5.8%

Analysis of the average value of non-UK card transactions processed by Worldpay among UK based retailers (online and in-store) for the period 16 April – 23 June and 24 June – 31 August.

  Average Transaction Value (ATV)

(16th April – 23rd June)

Average Transaction Value (ATV)

(24th June – 31st August)

% change

(Growth)

In Store £39.90 £45.61 14.0%
Online £114.89 £132.91 15.7%
Total £54.21 £58.53 7.97%