The strength of the Swiss franc has caused a near three-fold increase in “shopping tourism”, where Switzerland’s shoppers go over the border to buy food and other groceries.
Swiss retailer Coop estimates that the money spent in neighbouring countries has trebled from between CHF1-2bn (US$1.1bn) a year to nearly CHF3bn as the soaring value of the Swiss franc makes products sold in euros across the border cheaper.
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By GlobalDataA Coop spokesman said: “The closer a shop to the border, the more it loses. It used to be that our domestic client base went across the border specifically for meat and dairy products – now they are doing their entire purchase.”
Coop also estimates that “shopping tourism” has cost it around CHF200m.
For an in-depth analysis of the effects of a strong Swiss franc, click here.