THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
VAT freeze promotions help give online retailers a strong start to the new year

Promising start to the year for UK e-tailers, with strong January sales resulting in an estimated 29% like-for-like growth in comparison with the first half of January 2010.

GENERAL MERCHANDISE

VAT freeze promotions help give online retailers a strong start to the new year

ReD’s figures, which are based on real-time sales estimates from leading online retailers across the UK from 1st January to 16th January, show that over 16 million transactions took place in the first half of the month, accounting for £2.9 billion worth of purchases online.  The busiest day of the year so far has been 4th January - the day the standard VAT rate increased - when £263 million was spent online in one day.  The day before the VAT rose by 2.5%, the country’s online shops saw their sales soar by 86%, compared to the same day last year according to ReD’s forecasts.

Carl Clump, CEO of ReD, commented: “Sales in the first seven days of the New Year were particularly strong, up 38% on the same week in 2010, as shoppers snapped up bargains in the January sales. People were keen to purchase items before the government’s VAT rise kicked-in, and obviously wanted to beat this deadline.  But in the end, many retailers froze VAT as part of their January promotions, and shoppers took the opportunity to buy bigger ticket items such as consumer electronics, household appliances and furniture, which is reflected in the average transaction value, which rose to £172, compared with £154 in January last year.”

Many major retailers postponed passing on the new 20% VAT rate until 16th January, when they ended their January sales, which helped growth to continue throughout the first half of the month. ReD predicts that there were on average 1 million online transactions per day in the first half of January, with average daily sales of £182 million.

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Retail Human Resources Summit
Retail Human Resources Summit
Wednesday 3 October 2018
The Cavendish Conference Centre, London W1
The 10th HR Summit 2018, The Cavendish Conference Centre, London W1, 3rd October 2018
The Retail Design Summit 2018
The Retail Design Summit 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Summit 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
National Minimum Wage Breakfast Briefing
National Minimum Wage Breakfast Briefing
20 September 2018
6th Floor 1, St. Martin's Le Grand London, EC1A 4AS
National Minimum Wage Breakfast Briefing