It’s been a difficult few months for the UK economy, despite seeing a surprising 0.4% growth in GDP over the last year. Theresa May and the Conservative Party have had to navigate a poor showing during the snap General Election, witness a rise in the popularity of the so-called ‘unelectable’ Labour leader Jeremy Corbyn, undergo protracted and unproductive withdrawal negotiations with the EU and deal with the growing concerns of business leaders in nearly every sector – from the creative arts to the steel industry.
However not every sector is seeing falling profits and the potential of a turbulent future. One industry reporting positive growth in the wake of the Brexit vote is the luxury goods sector, with the drop in the value of the pound (coupled with a recent boost in tourism) leading to increased sales in a range of luxury markets.
Sales of luxury goods (such as designer clothing and high-end watches) were up 11% in the last quarter, and brands such as Net-A-Porter and Burberry have expanded their UK headquarters in the wake of positive sales results. Luxury car manufacturer Rolls Royce has also reported a jump in sales, leading to them announcing that they would remain in Britain and expand their UK manufacturing hub.
While all luxury sectors are seeing promising growth, the luxury watches sector has seen particularly strong results, with an impressive 44% increase in sales over the second quarter of 2017, and preliminary figures for the third quarter suggesting continued improvement.
Undoubtedly the spending power of international buyers has helped boost this industry, and they appear particularly keen to spend money in the UK given the fall in the value of the pound against the dollar and Euro, making purchases seem particularly good value for money (compared to the same products before the Brexit vote).