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Retailers in Germany scored big from the UEFA EURO 2024 tournament in June and July this year. In a summer set to break records for inbound travel to Europe, what can European retailers learn from international sporting events?
The tournament was a global event. Even ahead of the final on Sunday 14 July, 2.6 million spectators had already attended the 50 matches played, with fans travelling from over 190 countries. Plus, the ten Fan Zones across the host cities welcomed over 5.8 million visitors during the competition.
The influx of international travellers to Germany brought footfall to stores and importantly – as shown from Planet’s payments data – a spike in spending.
We’re focusing on a select few countries in this article, because most residents from countries within the European Union would not be eligible for Tax Free shopping when visiting Germany. We’ve looked at Tax Free spending from Turkish, Georgian, and Ukrainian fans, and it’s clear that the matches involving these nations led to spikes in Tax Free spending during the competition.
What should retailers learn from this? With the increased footfall, it makes sense to optimise payments for all your international customers. This includes clear instructions for your Tax Free services, giving customers the option to pay in their own currency – and offering their preferred payment methods. And with stores being extra busy too, it’s also sensible to take steps to maximise in-store efficiency of the payments process.
The summer of sport isn’t over. The Olympics are just over a week away and Europe is braced for a surge in inbound tourism. The Games are set to attract visitors from 178 countries to France, with over a million tickets sold so far to people outside of the host country.
Let’s look at how the Euros drew in international shoppers to Germany and the impact on international spending.
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Football fever drives international spending
Germany, the host of the UEFA Euro 2024 tournament, saw a 19% boost in international arrivals compared to the same period in 2023.
And we can expect a similar story in France, which has seen an increase of 124% in demand from Chinese tourists for flights to Paris compared to last year. And a 25% increase in demand from US tourists according to ForwardKeys data.
Turkish fans lead the way in Germany
During the Euros, Turkey played Georgia in a group stage match in Dortmund on 18 June. On this day our data shows there was a spike in Tax Free sales from Turkish tourists from 5.6% to 8.9%. This indicates that fans were in the city and ready to spend.
And on 22 June, Turkey played against Portugal in Dortmund, resulting in a surge in both the share of sales attributed to Turkish tourists and the overall average transaction value. Luxury goods were particularly popular among Turkish visitors, accounting for 51% of sales in this category.
Match day sales from Ukrainian and Georgian tourists
Turkish tourists weren’t alone in demonstrating their spending power during the Euros.
When Ukraine played against Romania on 17 June in Munich, there were spikes in the lead-up to the game. Significantly, there was a rise of 10.3% in the share of sales for Ukrainian tourists and ATV on match day. Luxury apparel proved to be the category of choice for Ukrainian visitors.
And we saw a similar trend on 20 June, the day before Ukraine played against Slovakia in Dusseldorf. That day, spending from Ukrainian tourists reached 13% of total sales in the city.
Looking at activity from Georgian tourists, spending also spiked in the days leading up to their match against the Czech Republic on 22 June and before their game against Portugal in Gelsenkirchen. On 20 and 21 June, Georgian tourists contributed to significant increases of 12% and 13% of total sales.
On 24 June, spending remained high at over 9%. It’s worth noting that Gen Y (or Millennials) were the top generation of spenders during these events, demonstrating their significant purchasing power.
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Make the most of this summer of sport
Our data supports the widely held view that major sporting events have a big impact on international spending, with host nations attracting tourists from all over the world.
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The surge in international spending during these events presents a golden opportunity for retailers. By catering to international tourists’ payment preferences, and offering additional services such as Tax Free shopping and currency conversion (DCC), retailers can maximise revenue and fully capitalise on the summer spending trend.
The extra footfall will also make for significantly busier stores and while this is likely to boost revenue, it’s also important to focus on in-store efficiency and turnover at busy tills to minimise queue times and deliver the best shopping experience.
When serving international visitors, using our technology, retailers can now equip their staff with a single PAX device that brings Tax Free, DCC and payments together. Thanks to auto card recognition, this approach optimises revenue as it means that all eligible shoppers will automatically be captured. It not only boosts turnover, but it also reduces time spent queuing at busy tills, meaning staff can work efficiently during peak periods.
The UEFA EURO 2024 tournament in Germany is a great example of how major events drive international footfall, and as the Olympics fast approach, retailers should prepare for the potential influx of tourists – and be ready to provide an unforgettable shopping experience to reflect an unforgettable summer of sport.
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