Thursday, 5 March 2009

VAT's more like it

The government's decision to cut VAT by 2.5 percentage points just prior to Christmas didn't win over direct marketers or, apparently, shoppers. Some marketers, such as Boden and Extremepie, did use the reduction as a springboard for deeper pre-Christmas price cuts, however.

Now that the initial confusion and flurry of promotional activity have gone the way of the flimsy gifts inside our Christmas crackers, children's furniture merchant Aspace has introduced a VAT-related promo of its own. Polybagged with the spring edition of its catalogue was a postcard declaring "NO VAT ON ORDERS OVER £250!" The offer ties in nicely with first line of the president's note on the inside front cover: "Whatever the gyrations of the FTSE 100 there are some things in life that really are important..."--SC

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