Impact of VAT on consumer spending
The retail sector is currently emerging from one of its busiest trading periods – Christmas and the January sales. We saw strong performance throughout this time, with footfall up 14 per cent in the first week of 2011 compared with the same time last year.
Now, at the beginning of February, it may still be too early to assess exactly what impact the increase in VAT is having on people’s spending power.
As predicted in 2010, much of the VAT increase has been absorbed by retailers through sales and special offers, but exactly whether this trend will continue into spring and summer remains to be seen.
Whatever the economic climate, The Mall Blackburn is working closely with retailers to attract shoppers with exciting new products and initiatives.
We’ve also launched a competition called The Retail Factor – to win space in the shopping centre to start your own business. There’s a fantastic prize package of £10,000 for the best budding entrepreneur and entries must be submitted by February 20th2011. Visit www.themall.co.uk for more details.
The Mall, Blackburn