Fine jeweller losing out to Europe rivals: Kiki McDonough, whose earrings have been worn by the Princess of Wales, warns her customers are opting for Milan and Paris over London due to lack of tax-free shopping
- Kiki McDonough’s gemstones have been worn by both Princess Diana and Kate
- But some of her really good clients are now heading to Paris, Milan or Madrid
A fine jeweller whose earrings are beloved by the Princess of Wales has warned that her customers are now heading to Milan and Paris instead of London.
Kiki McDonough’s gemstones have been worn by both Princess Diana and Kate.
But she said she was ‘losing money to Europe’ thanks to the lack of tax-free shopping.
Her self-named flagship store just off Sloane Square in central London sees visits from many tourists.
But Ms McDonough said: ‘A lot of them [Americans] are really good clients but they’re going to other places.’
Kiki McDonough (pictured) said she was ‘losing money to Europe’ thanks to the lack of tax-free shopping
Kiki McDonough’s gemstones have been worn by both Princess Diana and the Princess of Wales (pictured)
A ‘huge amount’ are instead going to Paris, Milan or Madrid, which have made it easier for them to get tax refunds.
She fears her business will miss out on what could be a major post-pandemic boom for other countries as holidaymakers resume long-haul travel.
At Christmas, a popular time for the jewellery business, several loyal customers said ‘we won’t see you this year, we’re going to Paris’, she explained.
With the Coronation fast approaching, as well as the summer holiday period, Ms McDonough is worried that businesses like hers will miss out on what could be a lucrative season.
‘We are looking forward to the summer but I would be a lot happier if we had many more tourists,’ she said.
She warned that ‘a lot of people are going to lose a lot of money’, from theatres to train operators to independent cafes. Ms McDonough’s international customers from Asia or the US usually visit her shop during a two- or three-week trip to the UK.
They won’t only visit London and its attractions but will also travel elsewhere in the UK, including Liverpool, the Cotswolds and Edinburgh.
So there is a ‘trickle-down effect’ to the rest of the country from tourists choosing to visit London, she added.
In practical terms, a sales boost from having VAT-free shopping would mean the luxury business could hire at least a couple more staff members.
A ‘huge amount’ are instead going to Paris, Milan (pictured) or Madrid, which have made it easier for them to get tax refunds
Many tourists visiting the UK for the Coronation will be deterred from splashing out due to a lack of VAT-free shopping, the boss of luxury leather goods brand Ettinger has warned.
Robert Ettinger said: ‘If people are coming for the Coronation, then they will come to London.
‘But there’s a chance they won’t buy as much when they’re here.’
He said some customers seemed ‘annoyed’ when they realised their purchases would cost them hundreds more pounds than on their last trip.