The Mulberry Group has called on policy makers in the U.K. to bring back tax-free shopping to help combat the challenges posed by a worsening macroeconomic environment and its impact on consumer sentiment. The luxury brand’s Chief Executive, Thierry Andretta, emphasized that reinstating this incentive is crucial not only for the luxury sector but also for hospitality, travel, and tourism industries.
During the first half of the year ending on September 30, Mulberry experienced a widened pretax loss of £12.8 million, compared to the £3.8 million loss during the same period last year. The increased loss was primarily driven by investments made to support business growth, including operational costs associated with new stores in Sweden and Australia. Despite this, the company saw a growth in revenue to £69.7 million from £64.9 million.
Mulberry Group believes that reinstating tax-free shopping would be a highly effective strategy for stimulating business growth in the U.K. This move would not only benefit the luxury sector but also contribute positively to various other industries.