Nearly half a billion pounds being taken out of high street retail through business rates which was increased in the budget.
What the impact?
16% of retail businesses fear will not see through 2013.
Bloomberg video
As you may now charity shops are exempt from rates as long as they sell mostly second hand goods. For a landlord charity shops allow the building to be occupied, a small rent secured but not to have to pay rates (usually but up to the local authority to approve). Of course if you are a retailer next door then it is annoying and charity shops are often seen as bringing down an area, especially if there are too many of them.
There was some good news in the budget with the reducition in corporation tax and NI.
The almost off the cuff comment in the video is that perhaps companies like ASOS (+37% sales in Q2) announced yesterday, totally online retailers, should contribute more the help out the struggling high-street. Wow thats pretty radical statement. +37% sales are figures that make most other retailers weep with envy and yes part of that is ASOS will pay rates on depots and offices and not 700 - 1000 shops to cover the UK but still, ASOS subsidising the high street failing retailers, isn't that like getting Usain Bold to start ten meters back to give everyone a "fair" chance at the Olympics? Retail is meant to be competitive and market driven.
As Nick Robertson CEO says "Customers are voting with their feet and shopping when stores are closed".
Government should not be trying to make it "fair" in a fight between online only retailers (ASOS) and multi-channel (Tesco) or hight street only (Primark).
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