By Planet Retail2012-07-20T07:00:00+01:00
Zara owner Inditex is to absorb the Spanish government-imposed VAT increase from 18% to 21%, so as not to increase prices. In 2010, when VAT rose from 16% to 18%, Inditex also kept prices stable.
“With this decision, Inditex maintains its policy of price stability as it has already absorbed a previous increase of VAT in Spain by identifying efficiencies in various areas of its business,” the retailer said.
Primark’s performance since reopening shows the continued relevance of its low-price, bricks-and-mortar business model that trumps online rivals, bosses believe.
Value fashion giant Primark’s profits will be down by about two thirds this year, but trading in reopened stores has been encouraging.
While many retailers have tightened their belts to counter the impact of the coronavirus pandemic, some have used the time to launch new concept stores to expand their reach.
With both Tesco and Superdry pulling out of international ventures on the same day, Retail Week asks whether UK retail is scaling back its global ambitions.
The coronavirus crisis will wipe $2.1trn (£1.7trn) off of global retail sales in 2020, new data has predicted.
The coronavirus outbreak has sparked fears and headlines worldwide since emerging in the Chinese city of Wuhan at the start of the year.
Site powered by Webvision Cloud