Many major currencies have boomed against a dollar weakened by investor fears about the health of the U.S. economy -- particularly after banks announced over $50 billion (24 billion pounds) of write-downs on assets linked to the troubled housing sector.
With sterling at its strongest versus the dollar in 26 years, a rule of thumb for British shoppers is to halve the dollar price of goods to get their cost in pounds.
This emphasises how dramatically cheaper U.S. goods seem. Add in the cost of a flight and hotel at peak season, however, and the cost spikes.
In New York, a shopper could pick up an Omega men's watch, a pair of Timberland boots, a pair of Ray-Ban Wayfarer sunglasses and a bottle of Chanel No. 5 perfume for about $3,750 (1,830 pounds) -- about 20 percent less than they would cost at home.
Add to that the typical cost of the flight and a weekend in a Manhattan hotel -- charging premium rates in the run-up to Christmas -- and the total is 2,850 pounds, adding roughly 1,000 pounds.
"In the four days I'm here I'll spend about $900 and there is no way I would spend that in four days in London," TV producer Catherine Mark told Reuters by telephone from New York. "I'm not really that bothered about the shopping, it's just exciting being here."
On top of travel costs, returning Britons face a limit of 145 pounds ($298) in the value of goods imported, after which they must pay 20 percent tax. Attempted evasion -- or ignorance of the limit -- is penalised by doubling the tax.
Even if more shoppers are heading to the United States, the Revenue and Customs office (HMRC) says it has not seen an increase in goods brought back, adding that it targets mainly large-scale multiple purchases.
"We thought we might get some increased activity, but in actual fact people seem to be quite well aware of their spending and ... we haven't seen an increase in goods coming in," said Mike Burrell, spokesman for HMRC.
Some shoppers say they unpack U.S. purchases immediately, and work them to make them look "used" before flying home.
STOCKPILING DOLLARS
