Americans Hit Europe for Cheaper Luxury Goods
By: James Flippin · December 13, 2022 · Reading Time: 3 minutes
EU’s Cheap Prices
Thanks to the strength of the US dollar, Americans are taking the trip across the pond to Europe for their holiday shopping sprees. By shopping at stores in Paris or Milan, instead of New York or LA, Americans are able to take advantage of the strong dollar and save some cash.
Some industry insiders estimate that total American spending in the region will be more than twice as high as it was in 2019. And when it comes to global spending on luxury goods, Americans will account for up to 34% of total spending, compared to just 22% in 2019.
Filling the Gap
For European countries, this influx of US shoppers is like Christmas coming early.
Currently, consumer confidence across the continent is at a low as countries get slammed by high inflation. This is incentivizing many Europeans to tighten their purse strings and pull back on spending.
On top of that, Chinese tourists are also missing from the European travel picture. Chinese citizens are still dealing with the country’s strict COVID-19 lockdowns and are unable to travel abroad. Fortunately for Europeans, US shoppers just might make up the difference.
Why Should I Care?
If you’re like most Americans, your weekend plan probably doesn’t include flying to Paris just to save $300 on a Louis Vuitton (LVMUY) bag. But it’s still important to note the pricing disparity between the dollar and the euro.
The difference does not just apply to luxury goods, but almost all consumer products across the pond. The cost of living in Europe is cheaper than it has been in recent years – which means the cost of traveling is, too.
So if you have been considering a trip to Europe, now could be an optimal time to pull the trigger — especially if you have a larger family. The trip might wind up being more affordable than you’d expect. And if one thing’s for certain, souvenir shopping will be.
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