Shopping

When Prussian Field Marshal Blücher, Wellington's stout ally at Waterloo, first laid eyes on London, he allegedly slapped his thigh and exclaimed, "Herr Gott, what a city to plunder!" He was gazing at what, for the early 19th century, was a phenomenal mass of shops and stores. Since those days, other cities may have equaled London as a shopping mecca, but none has surpassed it.

Although London is one of the world's best shopping cities, it often seems made solely for wealthy visitors. To find real values, do what most Londoners do: Wait for sales or search out discount stores.

American-style shopping has taken Britain by storm, in concept -- warehouse stores and outlet malls -- and in actual name: One block from Hamleys, you'll find the Disney Store. Gap is everywhere, and Tiffany sells more wedding gifts than Asprey these days. Your best bet is to concentrate on British goods. You can also do well with French products; values are almost as good as in Paris.

Taxes & Shipping

Value-added tax (VAT) is the British version of sales tax. VAT is a whopping 17.5% on most goods, but it's included in the price, so the number you see on the price tag is exactly what you'll pay at the register. Non-E.U. residents can get back much of the tax by applying for a VAT refund.

In Britain, the minimum expenditure needed to qualify for a refund on value-added tax is £30 ($57). Not every single store honors this minimum, but it's far easier to qualify for a tax refund in Britain than almost any other country in the European Union.

Vendors at flea markets may not be equipped to provide the paperwork for a refund, so if you're contemplating a major purchase and are counting on a refund, ask before you buy. Be suspicious of any dealer who tells you there's no VAT on antiques. This was once true, but things have changed -- the European Union has made the British add VAT to antiques, and pricing should reflect this. So ask if it's included -- before you bargain. Get to a price you're comfortable with first, then ask for the VAT refund.

VAT is not charged on goods shipped out of the country, whether you spend £30 ($57) or not. Many London shops will help you beat the VAT by shipping for you. But watch out: Shipping may be even more expensive than the VAT, and you might also have to pay U.S. duties when the goods get to you at home.

You can ship your purchases on your flight home by paying for excess baggage (rates vary by airline) or have your packages shipped independently, which is generally less expensive than shipping it through the airlines. To ship independently, try Burns International Facilities, at Heathrow Airport Terminal 1 (tel. 020/8745-5301). You can avoid the VAT upfront only if you have the store ship directly for you. If you ship via excess baggage or an independent shipping company, you still have to pay the VAT upfront and apply for a refund.

How to Get Your VAT Refund -- You must get your VAT refund form from the retailer. Several readers have reported that merchants have told them they can get refund forms at the airport as they leave the country. This is not true. Don't leave the store without a form -- it must be completed by the retailer on the spot. After you have asked if the store does VAT refunds and determined their minimum, request the paperwork.

Global Refund (www.globalrefund.com) is your best bet for getting VAT refunds at the airport. Shop where you see the Global Refund Tax-Free Shopping sign, and ask for a Global Refund Tax-Free check when you purchase your items.

Fill out your form and then present it -- with the goods, receipts, and passports -- at the Customs office in the airport. Allow an hour to stand in line. Remember: You're required to show the goods, so put them in your carry-on.

Once the paperwork has been stamped, you have two choices: You can mail the papers (remember to bring a stamp) and receive your refund as a British check (no!) or a credit card refund (yes!), or go to the Cash VAT Refund desk at the airport and get your refund in cash. Know that if you accept cash other than British pounds, you will lose money on the conversion.

Many stores charge a fee for processing your refund, so £3 to £5 ($5.70-$9.50) may be deducted from the total you receive. But since the VAT in Britain is 17.5%, it's worth the trouble to get the money back.

Note: If you're heading to other countries in the European Union, you should file all of your VAT refunds at once at your final E.U. destination.

Hours

London keeps fairly uniform store hours, mostly shorter than American equivalents. The norm is a 10am opening and 6pm closing Monday to Saturday, with a late Thursday night until 7pm. Most stores on Oxford Street and in Covent Garden don't close until 7pm every day. However, more upmarket stores on Bond Street usually shut earlier -- around 6pm.

Sunday shopping is now legal. Stores are allowed to be open for 6 hours; usually they choose 11am to 5pm. Stores in designated tourist areas and flea markets are exempt from this law and may stay open all day on Sunday. Therefore, Covent Garden, Greenwich, and Hampstead are big Sunday destinations for shoppers.

Sales

Traditionally, stores in Britain held only two sale periods: January and July. Now, whenever they need cash they have a sale, although January and July sales are still prevalent. July sales begin in June -- or earlier -- and promotions are commonplace. The January sale is still the big event of the year. Boxing Day in England (Dec 26), following the Christmas shopping spree, marks the beginning of year-end clearance sales, which often run through January. On Boxing Day itself, many merchants take an additional 10% off merchandise that has already been marked down. Though some stores start their after-Christmas sales on December 26, most start after the first week in January, when round-trip airfares are in the low range, and savings on sale items might earn your travel money back if you find enough bargains.

Discounts can range from 25% to 50% at leading department stores. Depending on their inventories and their sense of timing, Harrods produces some very visible sales events, spending large amounts on promotions and publicity. Depending on the sale, extra discounts might apply to souvenirs with Harrods logos, furniture and gift items, English china (seconds are trucked in from factories in Stoke-on-Trent), and English designer brands like Jaeger. But while the Harrods sale is the most famous in London, it's not the only game in town. Just about every other store -- except Boots -- also has big sales in January and June. Beware, though: There's a huge difference in the quality of the finds at genuine sales, when stores are actually clearing the shelves, and the goods bought at "produced" sales, when special merchandise has been hauled in just for the sale.

Duty-Free Airport Shopping

Shopping at airports is big business. Terminal 4 at Heathrow is a virtual shopping mall, and each of the other terminals at Heathrow has a wide range of shopping outlets, with not a lot of crossover between brands. Prices at the airport for items like souvenirs and candy bars are, of course, higher than on the streets of London, but duty-free prices on luxury goods are usually fair. There are often promotions and coupons that allow for pounds off at the time of purchase. Most of the sales at these airport shops are made for passengers passing through Heathrow en route to other destinations, usually home. Most passengers, by the end of their stay in London, have at least some grasp of what items are available in London shops and at what prices, and therefore have some basis of comparison to prices of equivalent goods outside the airports.