Retailers have enjoyed a busy start to the January sales, as stores report footfalls far higher than the same period last year.
Retailers have enjoyed a busy start to the January sales, as stores report footfalls far higher than the same period last year.
Footfall on December 27, the busiest shopping day now that January sales begin on Boxing Day, was almost 18 per cent higher than on the same day last year, according to Experian.
It is thought that many shoppers are rushing to beat the VAT increase, which comes into force on New Year's Day. There is therefore concern that the good news for retailers may not last long, with consumers staying away from stores after the New Year.
The VAT increase has been widely criticised for failing to encourage a retail recovery. While sales have increased over the festive period, many analysts have been disappointed with the rate of growth. The level of pre-Christmas sales are likely to be seen as a barometer for the economic health of the country as a whole.
Pubs and other businesses open during the night of December 31 were told last month that they would benefit from an extension to the VAT reduction. These firms will be able to continue charging VAT at 15 per cent until 6am on January 1. Business owners have been warned, though, that they must clearly delineate sales made during these hours in their VAT accounting.
