April 28 2021  |  Retailers

Dixons to close TR stores following change to UK's duty free laws

By Laura Shirk

According to a media announcement released by UK Travel Retail Forum (UKTRF), Dixons Carphone, the parent company of Dixons Travel, will close all 35 Dixons Travel outlets across the UK.

The closure follows the slow recovery of COVID-19 and is a direct result of the UK Government's decision to change tax-free shopping rules following the UK's departure from the EU on January 1.

In an unexpected move, the Government declared that tax-free shopping would be removed from a number of categories including electronics for all travelers leaving the UK from this date.

“When the Government took the decision to remove tax free shopping last year, the UK Travel Retail Forum told the Exchequer Secretary that the impact on airside retailers and airports would be profound.

Sadly, today that impact has led to the closure of Dixon’s Carphone airport shops up and down the country and the loss of airport jobs crucial to local economies.

While we commend Dixon’s commitment to helping its staff find roles elsewhere, there is no escaping the clear negative consequences stemming from a completely avoidable decision by Treasury. Airports will not be able to replace this lost revenue immediately, and will now find it harder to invest in infrastructure, route development and recover from COVID-19.

UKTRF continues to urge the Government to reconsider its position to avoid causing further damage to UK businesses and UK livelihoods. It should move to reinstate airside VAT-free shopping before further damage is done,” says Francois Bourienne, Chair, UK Travel Retail Forum.

REGION Americas

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