Garden centres swung into action on the VAT reduction – tackling it in many different ways – but many were left wondering what the fuss was about.
Public reaction has been muted - GTN Online went out and about to check on how independent retailers tackled the issues at their busiest time. Some of the best ideas are pictured below, with details.
Main action points were:
1) No changes to prices – pass on the 2.13% reduction to the original price at the tills.
This has been the most common course of action both in garden centres and the High Street. GOOD IDEA: Good garden centres explained why the 2.5% cut translated to 2.13% in POS at the tills, as well as giving extra information about what products carried VAT and which didn’t.
2) Use the VAT change to offer new promotions
With discounts everywhere, some smart retailers have been offering ‘Bounce back’ vouchers to increase footfall in Jan/Feb 09. GOOD IDEA: Garden & Leisure are currently offering £2 off vouchers and a ‘Treat a Friend’ 2-for-1 meal offer both running from January to Feb 1.
3) No change
Some garden centres have made no changes whatsoever - the decision to reduce VAT was a Government ‘suggestion’ – and are pocketing the difference in a attempt to make up lost ground in a tough year. GOOD IDEA? The jury’s out, but the same retailers report that there have been zero complaints or enquiries by customers.
4) Pass the VAT reduction on to Charity
Donations to Charities have been hard hit in the tough times. Greenfingers came up with a invitation to garden centre retailers to give customers the choice of donating the 2.13% price reduction to charity - see Greenfingers proposal.
One thing that all agreed on, however, was the major cost in time & resources to retailers at their busiest time of year.
Helen Lloyd, from Whitacre Garden Centre, Coleshill, near Birmingham, told GTN: “It’s taken us over two days to get the right information, inform staff and start to create the POS to ensure our customers know what’s happening.”
Boyd Douglas-Davies, of Webbs of Wychbold, estimated it would cost up to £50,000 to implement all the changes in his business.
We’ve got together three of the most useful sets of guidelines below to help get a balanced view on what action retailers and suppliers can take. Just click on your chosen guide to see the documents.
Useful Links
HTA VAT GUIDANCE
BRITISH RETAIL CONSORTIUM GUIDE TO VAT
HM REVENUE & CUSTOMS GUIDELINES
