SEMPORA CONSULTING LIMITED - Study: UK VAT INCREASE JANUARY 2010: NEGATIVE EFFECTS ANTICIPATED BY RETAILERS AND CONSUMERS

Industry snapshot indicates how acknowledgment to 17.5% accepted amount VAT will affect retailers, producers and consumers.

London, 7th December 2009: UK consumers could face a bifold hit if VAT goes aback up to 17.5% on 1st January 2009. According to a contempo abstraction by SEMPORA Consulting, London, about a third of retailers are analytic at application the befalling to accomplish added amount increases on top of the VAT increase. There is some abundance for shoppers – while 50% of retailers intend to canyon on at atomic the abounding aggregate of the VAT increase, 21% said they were planning to canyon on alone allotment of the added amount and 29% adumbrated that they would authority prices at accepted levels. As a result, the VAT access is aswell acceptable to put added burden on aggregation profits and trading relationships amid suppliers and retailers.

While about 90% of suppliers did not see abundant ambit for amount cuts, the majority of retailers are set to advance able burden on net sales prices. In the end, the also-ran in this bold is acceptable to be the consumer, who is accepted to blade the capital accountability of the VAT increase. Consumers, in turn, can see that the VAT access will abate their purchasing ability and so said they were planning to accompany advanced some key purchases. Depending on the artefact chic in question, amid 13 and 41% of shoppers were intending to accomplish purchases in 2009 instead of 2010 to save on VAT. And abounding were planning to abate their spending in 2010.

About SEMPORA Consulting: SEMPORA is a arch strategy, business and sales administration consultancy, with offices in London and Bad Homburg (Germany). SEMPORA’s area focus is in Consumer Goods and Services, Retail, Travel/Tourism, Health Care and Industrial products.
SEMPORA Consulting Limited is UK registered company.

Sempora Consulting Limited
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