EXACTLY ONE WEEK after the increase in the VAT, two leading City businesses that have been absorbing the 2.5 per cent hike say there has been no noticeable fall-off in shopping.
In fact, the island’s No.1 department store Cave Shepherd & Co. is reporting that it has been business as usual.
“There has been no fall-off in traffic or customer spending,” company spokesman Richard Simpson told the MIDWEEK NATION last night, adding that a pickup was expected over the Christmas period.
“We think we will have a similar Christmas to that of last year.
We are anticipating a slight improvement in business come January – that is, in visitors from cruise ships,” he said, without giving any specific figures.
Marketing manager of Dacosta Mannings, Grace Chambers, also reported that despite a slight dip in sales, the company had been holding its own.
“We are slightly below what we were last year, but we are seeing customers continue to purchase the items from us and I thinkthat having the VAT maintained was a plus for us in that regard . . . .
“We still have about two weeks before the season ends and we are hoping to make up,” she said, while disclosing that the company was preparing to unveil a number of initiatives with the view to increased sales.
Last month, Minister of Finance Chris Sinckler announced that the rate of VAT would move from 15 per cent to 17.5 per cent effective December 1.
Based on the change, analysts have been projecting a significant dampening in spending that was expected to hurt businesses.
However, major Bridgetown stores announced last week that they would delay adding on the VAT for December, the busiest shopping month of the year.
Chambers said Dacosta Mannings remained optimistic about its performance heading into 2011 since sales are driven by customer demand.
“I think customers will continue to weigh the pros and cons, and there are some things that they still have to buy. If their stoves are broken they have no choice but to buy a new one. We are hoping that by the [time we stop absorbing the VAT] consumers would be settled . . . . and the fall-off would not be a major one.”
