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News Desk The London economy is riding high because of record numbers of shoppers from China and the Far East spending on average £1,700 each during the Christmas sales, with leading shops like Selfridges seeing thousands of Chinese queuing up to get their hands on discounted luxury brands.
Despite the economic downturn globally Chinese shoppers are spending more on luxury products than British shoppers, who are focusing on luxury brands like Gucci, Fendi and Louis Vuitton which are cheaper here in the UK than in China.
In November retail sales in the UK increased by 0.7 percent above what it had been in the same month 2010. In November 2010, the comparable increase was 2.8 percent and it was 4.1 percent in November 2009, according to statistics from the British Retail Consortium.
New figures on the state of the British economy have indicated that the UK is likely to experience a recession with the services sector showing output has shrunk by 0.7 per cent in October according to the Office for National Statistics.
Helen Dickinson, head of retail at the accountancy firm KPMG, said the retailing business in Britain is becoming weaker.
"Christmas is a crucial trading period for the UK retail sector but this year many retailers will be nervous and unsure as to how the season will pan out," Dickinson said.
One of the department stores that has benefitted from the influx of Chinese shoppers is Harvey Nichols which has seen its December post-tax annual profits go up by 32 percent in comparison to 2008.
Selfridges in an attempt to make shoppers from China shop "easier" have introduced the acceptance of "UnionPay cards" which is commonly used in China.
Jason Wang a student from Hong Kong said to The London Daily News:
"London has everything, the high end products here are competitive like bags, watches and shoes, which are much cheaper and come with more options than you can find with the same items in China".
Wang and his family said he expect to spend about £5,000 on items this year in London.
VisitBritain has predicted by 2014 the number of Chinese tourists coming to Britain will grow by 114 per cent than current figures.
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