London has become a bargain haven for fashion shoppers from the Contintent, thanks to the ailing fortunes of the pound.

Just as Britons flocked to New York on shopping sprees last year when the pound was strong, customers from France, Italy, Germany and Spain are now crossing the Channel to take advantage of the rise in the euro.

While the value of the pound has fallen drastically in recent months, the euro is high. On Friday one euro was buying 81p compared with 69p the same time 12 months ago.

Visitor numbers from traditionally strong markets such as the United States have plummeted during the credit crunch, but the number of contintental visitors has increased by 3 per cent, according to VisitLondon, the capital’s marketing body. Selfridges has noticed an even greater increase at its Oxford Street store. In September customer spending from the Continent increased by more than 20 per cent compared with 2007.

Paul Kelly, Selfridges’ chief executive, said that trading from France and Italy was even higher, with jumps of 50 per cent and 25 per cent respectively. Mr Kelly said: “This is a very good time for customers from the eurozone to take advantage of the exchange rate and buy the best fashion at lower prices.”

James Bradbury, the retail director of Liberty, said there had been a large influx of European customers. “We have also seen an increase in customers buying brands from their home markets here due to the exchange rate. One of our largest sales this weekend was a French lady buying Vanessa Bruno.”

With British customers becoming increasingly thrifty in light of the credit crunch, retailers view Europe as an increasingly crucial market. In the lead-up to Christmas, marketing campaigns will be focused on the Continent to encourage weekend shopping trips. Advertising campaigns are planned for 2009.

Veronica Ganado from Malta used to come to London for the sole purpose of visiting her daughter. Now, she comes to shop as well. Shopping in Selfridges with her daughter, Elizabeth, and mother, Rose Mercieca, she said: “The euro goes so much further for us now - we are getting a very good deal. We have the weather, you have the great shopping, It’s very good value and I think a lot of people will go shopping and spend a lot more because of it.

The New West End company, which represents retailers on Oxford, Regent and Bond Streets, has launched a marketing drive into Europe to take advantage of the interest and highlight London’s shopping opportunities. Jace Tyrrell, a spokesperson, said: “Bond Street is very attractive to a European shopper. It’s exactly where they want to be seen and they don’t get all those brands in a concentrated place like we do here. There are also attractive, British brands at a discount price, such as Primark.”

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