Burberry shoppers snap up goods in Paris and Milan, not London

Brand says decision to stop tourists reclaiming VAT has hurt UK reputation as luxury shopping destination

Tourists hoping to snap up Burberry products are heading to Paris and Milan rather than London, while luxury shoppers face price significant increases as costs rise, according to the British fashion brand.

Burberry, which plans a return to the Britishness" of the 167-year-old company in a refocus under new chief executive Jonathan Akeroyd, said that American tourists in Europe fuelled a double-digit increase in store sales in the three months to the end of September.