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VAT-free shopping axe causes Dixons Travel to close stores

Tax
Gary Noakes
28 April 2021

The Airport Operators Association has criticised the axing of VAT-free shopping, blamed for the closure of all 35 Dixon Travel stores in UK airports.

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Around 400 staff will be offered alternative jobs with the closure of the stores. Dixons said the shops, said by Sky News to make £20 million annual profits, would shut following the government’s decision to axe tax-free shopping following Brexit.

Dixons said: “We do not expect passenger numbers to recover sufficiently to compensate for the removal of airside tax-free shopping by the UK government from 1 January. This has led to the difficult decision to close this business."