True Views: reviving the High Street – is it really that taxing?
The customer behaves in a multi-channel way; the retailers provide multi-channel experiences to its customers – it is our belief the tax system should similarly reflect a channel agnostic structure.
Business rates have become a “cause celebre” in the retail sector. It is the subject of much complaint, but few meaningful and relevant solutions have been put forward.
What is clear to us here at True is that attempting to solve the problem in isolation – with proposals of an “online only” tax – risks harming the high street rather than revitalising it. This is particularly important given the increasing multi-channel nature of most successful retailers, their lack of visibility on e-commerce channel profitability, despite any further levy, and the difficulties in attributing the consumer journey.
Writing as one of the largest UK investors in fit-for-the-future retail and consumer brands, we have the benefit of seeing the changing nature of the sector throughout the whole investment vertical: we receive over 2,000 innovative business plans from 38 countries each year, and partner with 11 of the largest global retail corporates. Read our view here.
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