How to unlock more revenue from US tourists this Thanksgiving and Black Friday

The Thanksgiving holiday period, which starts on November 25 and includes Black Friday on November 29, is likely to boost US visitor numbers across Europe.???

The question is: how can retailers maximise spending from US shoppers over this key period??

We have some hints for you here in this article. Let us know what you think in the comments!??

US tourist spending boosts tax-free sales

Planet Intelligence data showed that last year US tax-free sales volumes peaked across Europe during the busy Thanksgiving holiday week (November 20 - 27).

In fact, the start of the holiday period saw a more than 100% increase in US tourist tax-free sales, compared to the previous day. Almost every major market benefited:?

• France experienced a 60% surge in tax-free sales over Thanksgiving, Black Friday and Cyber Monday.?
• Sales in Italy rose by 25% on Thanksgiving, followed by a surge of over 50% on both Black Friday and Cyber Monday.
• Spain saw an increase of over 40% on both Black Friday and Cyber Monday.?

Fast forward to this year and the US has maintained its position as the leading source market for tax-free sales across Europe, accounting for 25.3% of all sales-in-store (SiS) at an Average Transaction Value (ATV) of €1,266 in September.?

Why do Americans choose Europe for tax-free shopping

Planet’s Global Shopper Sentiment Report shows that nearly half (49%) of US shoppers find the ability to save money through tax-free shopping abroad more appealing than shopping in their own country. This was higher than the average for all nations at 41%.?

And Europe remains a key international destination for Americans, with many of Europe's major cities continuing to lure Americans looking for a blend of sightseeing, culture and shopping.???

Given the timing of Thanksgiving and Black Friday, US tourists will often look to take advantage of the savings that tax-free shopping offers. This is particularly so over the Black Friday period when there are often additional savings with discounts on high-value items such as electronics, luxury goods, and designer pieces.?

?? Our Planet Intelligence data from last year’s holiday season illustrates this. It showed that the Average Transaction Value (ATV) for US shoppers rose dramatically by over 65% on Black Friday, reflecting the spike in spending on higher value items. In fact, 10.3% of all tax-free sales within the Electronics category in November took place on Black Friday alone and there was a 53% month-on-month rise in spending in this category, when compared to October.

Most Americans also like the novelty of browsing and buying items from other locations, with 58% of US shoppers eager to experience the ‘Made In …’ experience that new and different products from Europe offer. This compares to 50% across all other nations.??

For US tourists, the unique in-store shopping experience paired with the savings from tax-free shopping acts as a magnet to Europe’s stores, particularly over the Thanksgiving holiday period.?

Making tax-free shopping quick and easy for everyone

The high volume of US tourists over the Thanksgiving holiday period and their spending power present European retailers with a unique opportunity to cultivate a loyal customer base from across the Atlantic.?

Yet, Planet’s Global Shopper Sentiment Report shows that as many as five in six US shoppers have had a substandard tax-free shopping experience. The main issue is that instructions from store staff aren't clear on how to shop tax-free, with 43.5% of US shoppers agreeing with this, compared to 31% as a whole.?

This is where training staff on tax-free shopping adds value. We’ve recently rolled out an exciting new state of the art online training tool for in-store staff to help them learn more about tax-free shopping. The feedback from customers using the tool is positive with 98% of staff members saying that they really enjoy this form of learning and would use the knowledge in their day-to-day work, which benefits shoppers by helping them understand the process.?

But, US shoppers also reported issues with the refund process, including tracking, payment methods and delays all scoring higher than the average across other source markets. It’s clear that US shoppers expect to enjoy the best possible experience, yet there are also challenges for retail staff too with peak shopping periods making for busy stores and congested checkouts, which can slow down the process and add to the sense of frustration all round.?

Balancing simplicity and operational efficiency is clearly an imperative

This is where our newly launched Shopper Portal makes life easier for everyone. It supports shoppers all the way through the tax-free process, from once they’ve made their purchase and been issued with their tax-free form, right up to the point at which they receive their VAT refund.?

It provides them with a clear direction on the next steps in their journey, an option to add their cards for refunds, which are tokenized, real-time status updates and access to Planet support.??

The Shopper Portal helps to streamline VAT refunds, making life easier for sales staff who spend less time explaining the process to customers. And it empowers shoppers to complete their refund at their convenience using their personal device. This much simplified approach should result in fewer complaints about the tax-free process, leading to faster refunds, reduced chargebacks, improved match rates and happier customers.

By offering a tax-free shopping experience that is clear, efficient, and enjoyable, retailers can directly address US consumers’ desire for savings and exclusivity, at the same time as using it as an opportunity to build lasting relationships with one of global tourism's most valuable demographics.

Maximise the revenue opportunity

To fully capitalise on the influx of US tourists during this season, European retailers also want to maximise the revenue opportunity.?

Our Global Shopper Sentiment Report shows there’s a high preference among US shoppers to pay in their own currency. It’s what they’re most familiar with, and 63% told us that they would do so if the option is presented.?

This is where currency conversion services give US shoppers more choice and clarity, as well as generating incremental revenue for retailers. There’s no better way of doing so than by combining payments, tax-free and currency conversion onto one all-in-one PAX device. With auto card recognition, retailers can generate more revenue from tax-free and currency conversion as this means that all eligible shoppers will automatically be captured and offered these value-added services.?

The technology also leads to a faster and more enjoyable in-store experience, helping staff work more efficiently with a faster rate of turnover at busy tills which is much needed over the busy Thanksgiving and Black Friday period.

The upcoming holiday period provides a fantastic opportunity to roll out the red carpet, and offer US shoppers the best possible tax-free experience, and to maximise revenue while optimising in-store operational efficiency.?

This is where Planet can add value with its range of innovative tax-free and payments solutions, bringing payments and software together to help retailers deliver an exceptional experience which keeps US shoppers coming back for more.???