Ticino Retailers Struggle as Cross-Border Shopping to Italy Surges

Retailers in Ticino are coming under increasing pressure as cross-border shopping in nearby Italy continues to rise sharply, shifting consumer spending away from local stores.

According to industry estimates, the value of purchases made abroad by Ticino residents has grown from around Swiss Franc 500 million to CHF 700 million over the past five years. Many residents now rely heavily on supermarkets and retail outlets across the border in Italy for everyday goods.

Enzo Lucibello, president of the Ticino Association of Large Retailers (Disti), confirmed the trend, citing data reported by Corriere del Ticino and global VAT refund operator Global Blue.

A key factor behind the increase is Italy’s revised VAT refund policy. Since February 1, 2024, the minimum spending threshold for tax-free purchases has been reduced to €70, encouraging more Swiss shoppers to shop across the border.

The city of Como has seen a 6% rise in tax-free spending over the past two years, significantly above the national average. Swiss consumers account for 61% of total VAT refund spending, making them the largest group of cross-border shoppers.

Data shows that while non-EU customers tend to spend on luxury goods, Swiss shoppers primarily purchase groceries and everyday products. In fact, around one in two Swiss users of the VAT refund system shop mainly in supermarkets near the border.

The trend continues to challenge local retailers in Ticino, raising concerns about the long-term impact on the region’s domestic retail sector.