U.S. tourists flock to luxury shops in Europe

Published

1 year ago

July 25, 2022

Reuters

American luxury shoppers traveling in Europe splurged at designer stores as the U.S. dollar and the euro hit parity on Wednesday

American luxury shoppers travelling in Europe feel as if they’ve hit the jackpot.

For the first time in twenty years, the euro and U.S. dollar are nearly equal in value.

The weak euro is tempting Americans like Shawna Wilson to splurge.

“Because the euro and the dollar are about the same, it definitely encourages us to spend. It’s like it’s on sale here, so we’re having no problem shopping.”
TOURIST FROM COLORADO AND MOM, SHAWNA WILSON, 49.

Wilson is among many American tourists flocking to Paris’s Avenue Montaigne this week, a strip of luxury stores which fronts designer brands such as Louis Vuitton, Chanel and Gucci.

“I am very excited that our American dollar is so strong, just when I am coming to Europe.”
TOURIST FROM NEW YORK CITY AND RETIRED TEACHER, SUSAN WEINBERG.

For Americans, purchasing a Chanel bag here could be cheaper by a thousand bucks, with savings from the exchange rate and tax refunds at the border on the way home.

But Erik Norland, senior economist at the CME Group in London, warns it’s not as simple as it seems.

“My own personal observation with luxury brands is that the prices of those goods tends not to vary from one country to another as much as you might expect. Another thing for Americans to consider, if they’re expecting bargains in Europe, is that in Europe in general there is much higher value added taxes there are in the U.S. Now that said, Americans who do shop over here can often get value added tax rebates when they leave. So that’s also something to look into as there might be a lot of calculations to make in terms of trying to find bargains. And it may not be as straightforward as people think.”
CME GROUP, SENIOR ECONOMIST, ERIK NORLAND.

On the flip side, European luxury shoppers like Sebastien Pozzi from Lyon, France, will feel a pinch at home – and while traveling to the U.S.

“Maybe we won’t buy anything. In France, it’s really expensive, that kind of brands, like Chanel, Dior. And here today… normally it could be cheaper in the U.S., but with the exchange rate, it’s not possible. It’s too expensive for us.”
TOURIST FROM LYON, FRANCE, SEBASTIEN POZZI.

Some analysts say the parity could last for at least a couple of weeks.

Real reason bosses want employers back in the office

Published

22 hours ago

November 30, 2023

ticker NEWS

As the world gradually recovers from the pandemic, employers are increasingly pushing for their staff to return to the office after years of remote work.

The driving force behind this push is the sharp decline in commercial property values, which has left many businesses concerned about their real estate investments.

Commercial property values have plunged in the wake of the pandemic, with many companies downsizing or reconsidering their office space needs.

This has put pressure on employers to reevaluate their remote work policies and encourage employees to return to the office. #featured

Money

Businesses cash in on Black Friday sales

Published

22 hours ago

November 30, 2023

ticker NEWS

Black Friday, the annual shopping frenzy, has become a global phenomenon rooted in economic strategies.

Retailers deploy various tactics to lure consumers, creating a win-win scenario for both shoppers and businesses.

The concept of Black Friday traces its roots to the United States, where it marks the beginning of the holiday shopping season. Retailers offer significant discounts on a wide range of products to attract a massive customer influx. This strategy, known as loss leader pricing, involves selling a few products at a loss to entice customers into stores, hoping they will buy other items at regular prices.

Retailers also employ the scarcity principle by advertising limited-time offers and doorbuster deals. This sense of urgency compels consumers to make quick decisions, boosting sales.

Furthermore, online shopping has revolutionized Black Friday economics. E-commerce giants use data analytics to customize deals, targeting individual preferences. Cyber Monday, the digital counterpart to Black Friday, capitalizes on the convenience of online shopping. #featured

Money

Australian inflation figure finally starts with a 4

Published

22 hours ago

November 30, 2023

ticker NEWS

Australia’s October inflation figures have surprised economists, as consumer prices rose at a slower pace than anticipated.

This slowdown was primarily attributed to a significant drop in goods prices, contributing to the nation’s subdued economic climate.

The Consumer Price Index (CPI) for October indicated a modest 0.4% increase, falling short of the 0.7% forecasted by analysts. On an annual basis, inflation stood at 2.1%, below the Reserve Bank of Australia’s target range of 2-3%. This unexpected deceleration is likely to affect the country’s monetary policy decisions in the near future.

Goods prices, including essential items like fuel and food, recorded a notable decrease of 0.8%, mainly due to supply chain disruptions and global economic uncertainties. Meanwhile, services prices continued to rise, albeit at a slower rate, driven by higher wages in some sectors.

This unexpected dip in inflation raises questions about the overall health of the Australian economy and the central bank’s strategies to combat it. Policymakers now face the challenge of balancing economic growth with the need to manage inflation effectively. #ticker today #featured