Help is at hand as VAT rises and adds to the burden on retailers
23 June 2010 : Industry News
We are all now aware that yesterday's emergency budget has resulted in VAT rising to 20% from the 4th January 2011 in an attempt to raise £13bn over the term of this government.
Not great news for anyone but inevitable given the UK’s extraordinary debt.
The British Retail Consortium commented that “it was relieved that the range of items subject to VAT won't be expanded but increasing the VAT rate will hit jobs, consumer spending and economic growth”.
The BRC director general Stephen Robertson went on to say “Changing computer systems and shelf prices on tens of thousands of products is a huge, costly exercise for retailers. Planning for catalogues is a particular nightmare.”
How many retailers will be confident enough to pass the full 2.5% on to their customers?
How many big retailers will squeeze their suppliers to protect their margins and their customers from the increase?
How many big ticket items will be bought before Christmas and in the New Year sales?
How quiet will early 2011 be on the High Street?
Another headache for retailers and wholesalers to cope with. These changes take time and need a considered solution. We don’t have a magic wand here at AASM but we do have the ability to lift the burden of day-to-day tasks by managing all of your e-commerce storage, picking, packing and despatch. We can even set up order hotlines and process orders through our call-centre.
Our services are designed to help retailers through the good time and tough times alike so send David Alliston an email or call 0845 521 2240 and see how we can help.
