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18 Feb 2019

The government has published more Brexit guidance for retailers in the case of a no deal Brexit
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11 Feb 2019

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Guidance in preparing for EU exit

11 Feb 2019

A new guidance has been published for the retail sector with information on preparing for the EU exit
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Mobile ecommerce conversions are low, but why?

8 Feb 2019

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Click & Collect market is predicted to grow

8 Feb 2019

The click & collect market is predicted to grow to 46% over the next five years
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In-store spending encouraged by mobile payments

5 Feb 2019

A study into mobile payments has shown that stores offering mobile payments have more customers and spending
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What business models are working well for retailers?

5 Feb 2019

Internet Retailing reports on retailer's business models that are working in the New Year and listening to the voice of the consumer
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Calls to delay Making Tax Digital rejected

5 Feb 2019

The government has rejected the recommended delay to the introduction of Making Tax Digital (MTD)


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Taxing online sales may be the way to save the high street

Posted on in Business News

Mike Ashley, Sports Direct founder and chief executive, spoke to Parliament's Housing communities and local government committees this week.

tax 

Ashley said that a 20% tax on retailers that turn over more than 20% of their business online would make retailers desperate to keep their high street business running.

As a retailer himself, Ashley said that:

"If I'm a retailer I will make sure not to pay 20% tax, I'd keep 80% of revenues going through the high street - I'd stop closing three stores into one. I'd now say it make perfect sense for me to cross subsidise those stores and keep it open. What's more, what I'd like is if we had click and collect through high street stores, that acts as a credit".

Click and collect as a feature encourages shoppers to come into the stores, it also means that shoppers are coming through the high street increasing foot traffic. But this is not just it, councils, landlords and retailers must all work together if they want to save the high street.

Ashley, argues that the high street is failing because of the internet. With a £400m internet business, the thing that is affected most by this business is the high street. In Ashley's mind the high street and department stores, which is a good concept, need to evolve and be different. Department stores are stuck with prehistoric rents and stopping them from moulding with the changing retail environment.

In his mind, there is a fix for the failing high street and it is not to fight against the internet and its presence in our lives but to work harmoniously with the internet and the community that makes up the high streets.

Although, Ashley has caught the attention of many M&S, New Look and Lakeland Leather were also at the hearing with opinions of their own.

M&S is looking to rebalance online sales with its store, with New Look focusing on its customers and what they want from its stores.

M&S has said it plans to close 100 full line stores as it move more clothing and homeware sale online to target the 33% of sales.

New Look, is also closing stores on the high street to rightsize its store estate for a future that is more online. This decision was driven by the customer.

Lakeland Leather are getting more into personal shopping and experiences with fashion shows in-store, connecting bricks and mortar to online.

The 33% of sales that took place online during Black Friday have not only affected how consumers shop at Black Friday but how they shop all year round.

What do you think?

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