Bargains galore as weak pound pulls in shoppers

30 June 2016 - 10:17 By Bloomberg

By voting to leave the EU, Britons have delivered a quick windfall to tourists eager to snatch up Burberry trench coats, Harrods Stilton cheese and Liberty scarves on the cheap.The outcome of last week's referendum sent the British pound plunging, making the country's goods and services significantly cheaper for foreign buyers.Consumers reacted immediately: Searches by Chinese for UK holidays "skyrocketed" on Ctrip.com's travel booking app, while Chinese news site Phoenix urged visitors to London to "buy, buy, buy".A slumping pound is a much-needed shot in the arm for UK luxury companies as the Chinese are the biggest buyers of high-end goods and do most of their buying overseas.Chinese travellers made 270,000 trips to the UK last year, up 46% on 2014."I wouldn't be surprised to see Chinese and Middle Eastern tourists flocking to the UK," said Edouard Meylan, CEO of Swiss watchmaker H Moser."People are ready to travel to get a 5% to 10% to 20% discount."The UK is the world's sixth-largest market for luxury spending, at £15.5-billion.Weaker sterling meant an effective 10% discount for Asian and US art collectors who went on a buying spree at a Sotheby's auction on Tuesday.Chinese billionaire Liu Yiqian's Long Museum fought to win a monumental Jenny Saville painting of naked female bodies stacked like sardines, outbidding four competitors including US art dealer Larry Gagosian.The work was the top lot of the boisterous evening sale that tallied £52.2-million, surpassing the high estimate."It's good to see some British exports are still desirable," auctioneer Oliver Barker quipped as bidding for the work soared to £6.8-million, an auction record for the provocative British painter. ..

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