Online sales tax ‘a retrograde step’, Pushon

A report published yesterday by the Housing, Communities and Local Government Committee (HCLG) suggests that the UK government should seriously consider implementing an online sales tax to “level the playing field” between pureplays and High Street retailers.

But such a tax would be a retrograde step, causing damage to the economy, according to Simon Wharton, Business Strategy Director at Pushon. “We should be supporting the High Street by encouraging innovation, rather than damaging future prospects for all,” he argues.

Taxing online retailers would fail to solve the fundamental issue, which is that consumer habits and expectations have evolved and the High Street is currently struggling to offer the same level convenience and choice provided by e-commerce, he adds.

There is, however, still a place for bricks and mortar stores. “Instead of relying on quick fixes like an online sales tax, retailers should be looking to secure their future by investing in technology that enables a better omnichannel experience, bridging the gap between in-store and online.”

Technologies such as augmented and virtual reality can help retailers transition from a purely transactional in-store offering to one that is more experiential and personal. “By building this type of interaction into their offering, brands can remain relevant, expect increased customer loyalty, and in turn, increased sales,” Wharton concludes.