... wait, they are already here.
Underpriced and over there
The
US economic crisis means American retailers are increasingly relying on
fashion-hungry British tourists to keep the tills ringing. Hadley
Freeman reportsHadley Freeman
Friday April 11, 2008
GuardianCharlotte
Martinson, 25, from London, and "really into Marc Jacobs", dithers for
just a minute a two. "I'm not sure which one I'm going to go for," she
muses, holding up a quilted blue jacket and a gold party dress as she
stands in the Marc by Marc Jacobs store in downtown Manhattan. After
the briefest of pauses she goes for what she describes as "the sensible
option": she buys them both.
Meanwhile,
at Gap, Caroline - "you can say I'm from Surrey but don't put my last
name; my husband would kill me" - has picked up so many T-shirts,
cashmere jumpers and little summer dresses that she is now "well into
triple figures. But in real money it's still like the early doubles,
right?"
Like
erstwhile downtrodden peasants gleefully pillaging a falling former
empire, Europeans are, famously, now taking advantage of the weak
dollar. Increasing numbers are coming to America to do their noble
international duty by pumping some of their stronger money into the US
economy. Presumably the "something to declare" channel is a little more
crowded than usual at Heathrow, with people exceeding the £145
duty-free limit on goods brought back.
Vogue
has even done a feature this month advising readers which American
fashion website to shop from if they are "tempted by the dollar
exchange rate". The New York Times recently claimed that "[The British]
are travelling because they want to shop. Period." Because of this, the
newspaper dubbed the British "the new Americans, whose once-dominant
dollar used to buy them everything, including a reputation", a
description that was both wistful and snide.
Retailers
in Manhattan, however, disagree, at least with the analogy: "The
British are the new Japanese, and New York is the new Italy - the place
to come to stock up on designer clothes," says Raegan Morgan, sales
specialist at Diane von Furstenberg. "We opened our downtown store in
May and, particularly since September, we've been inundated with
European visitors. The British especially really load up the dressing
rooms."
It
is a bit like a United Nations effort to give funds to a developing
country, but with more of an emphasis on Ralph Lauren and Levi's. And
in truth, this analogy can be read with something akin to literalism:
as Americans, beaten into consumer timidity by daily warnings about
their dying economy, increasingly forgo $300 (£150) dresses and a 17th
pair of jeans, US retailers are increasingly relying on British
tourists' money.
"If
we had to depend on custom from New Yorkers, it would be difficult,"
says Morgan. The store manager at a well-known American high street
store that asked not to be named admitted, "We all thank God for the
'two-bag Brits'," referring to the British practice of bringing two
suitcases on their New York trips - one packed with clothes to wear,
and a spare to bring back all the extras they will buy. Chris Heywood,
spokesman for NYC & Company, the official marketing and tourism
organisation for New York, is more blunt about how crucial the British
pound has become: "British tourism is absolutely essential to the
city's economy."
According
to the Office of Travel and Tourism Industries (OTTI), the number of UK
visitors to the US rose by 8% last year, to 4.5 million. Britons
accounted for 41% of all tourists from western Europe. New York is the
most popular American city for British tourists and, according to NYC
& Company, the UK is their number one inbound international market,
beating its geographical neighbour Canada into second place. In 2007,
the number of British tourists to New York City rose by 25%.
"The
combination of the weak dollar and the increased access via air travel
has obviously helped. For the Brits, the city is
essentially on sale," says Heywood. In 2007, 92% claimed that they came
to New York for shopping, while only 69% said they could be bothered to
do any sightseeing. Well, you can't bring back the Empire State
building, right?
In
2006, British tourists spent $1.64bn in New York City and, on average,
each visitor spent about $1,400 per five-day visit, including hotel
costs. Figures for 2007 are not yet available, but Heywood predicts a
"comfortable rise".
Of
course, electronics are popular purchases for visiting tourists:
stepping into the Apple store in New York's meat-packing district is
like strolling around Disneyworld's Epcot Centre, with every European
accent and language audible. But some goods don't travel as well as
jeans; an American computer might not work with a British socket.
The
most popular fashion purchases are American brands, such as Abercrombie
& Fitch, Levi's and Gap, as well as American
designers such as Ralph Lauren and Diane von Furstenburg. But some
American stores selling British labels are also reporting British
custom.
"Yeah,
we get a lot of British women shopping in here," says a sales assistant
in the Stella McCartney store in New York. "It tends to be women in
their 30s and they all say that it's cheaper to buy the clothes here
than in London." This, actually, isn't true: a comparison between the
goods at the NY and London branches of Stella McCartney proves that
prices are the same and occasionally higher in the US. But perhaps once
British tourists get into the shopping groove, they carry on
regardless, facts be damned.
Of
course, it's with the American brands, such as Diane von Furstenberg,
that the differences are most apparent: "Here our dresses start at
$200, whereas in the UK they're something like £200," says Raegan
Morgan.
To
cope with this British invasion, NYC & Company last year launched a
campaign called "Just Ask the Locals", which, as if to confirm all
stereotypes about New Yorkers' general sense of etiquette, gently
encouraged the locals to be nice to the high-rolling tourists by
reminding them that their money saves each New York household $1,000 a
year.
Nonetheless, some locals still have their grumbles, namely about the British ignorance of the concept of tipping. Then there is
their new habit of exclaiming how cheap everything is, "which is kinda annoying",says one shop assistant. "Also, you guys
take so long to order at Starbucks," laughs Morgan, with slightly gritted teeth. But the British are probably ordering the more
expensive coffees.
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