Retailers and etailers confident of improving economy
Businesses are confident that the economy is showing signs of improvement, according to customer research conducted by Maginus.
71% of respondents agreed that things are looking up. There was less confidence in Christmas trading expectations, with only 57% of Maginus customers banking on a better festive period than last year.
The research also addressed the contentious issue of the Government’s plans to raise the VAT rate back up to 17.5% on January 1st 2010. The survey revealed a split in opinions as to whether this is the right time to enforce the raise. However 21% predicted that the changes will cause spending to reduce. 64% of businesses are concerned that the VAT changes will have a negative effect on their business. The good news is that 87% of the respondents declared that their business is ready to deal with the changes in VAT.
Other topical issues in the survey included the political and environmental landscape. All of the participants felt that the forthcoming General Election wouldn’t encourage consumers to refrain from making large purchases, and when asked to select whether cost savings or green issues were of the greatest priority to their business, 69% opted for cost savings, with 31% citing both factors of equal importance. Businesses have also had to look to increase efficiency in recent months, with 86% of the companies implementing cost savings to their business in response to the recession.
Russell Dorset, Sales and Marketing Director at Maginus, said, “Christmas is going to be a crucial period for businesses. The survey results demonstrate that confidence is beginning to grow in the economy; however we’re not expecting a huge leap in Christmas trading. The good news is that the majority of our customers are ready for the VAT changes, proving these companies really are agile and flexible enough to cope with the demands the changes will make on their business.”
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