With the prospect of a rise in VAT to 20% after the general election, the retail sector faces a return to uncertain trading conditions at the latter part of the year. According to Displaysense figures, in order to counter this, retailers are investing more on their store fixtures to encourage customer up selling and make the most from every customer at the tills.
Displaysense, the UK’s leading supplier of shop fittings and display cabinets has experienced a growing trend of customers over the past month who are searching for and purchasing more premium and designer display products to promote higher ticket items. This push for premium is a far cry from the promotion of budget ranges seen in stores this time last year.
As the country ushered in the new financial year at the start of April, this trend does not look set to slow, as high street chains and independents alike rush to glamorise the in-store experience to make the most of the pre VAT rise period.
According to Displaysense, its premium display cases and glass shelving units have been in unusually high demand for this time of year, leading the company to source a variety of other high end display products such as a new range of designer fashion busts. This sudden rush to reinvent the in-store experience could be mistaken for a seasonal high street change, however conversations with Displaysense customers uncovered the desire to encourage customers to break away from the budget ranges.
Steve Whittle, the marketing director at Displaysense commented: “Whoever wins the next general election will inevitably increase VAT and this is going to affect shoppers buying patterns towards the end of the year. What we are noticing is that retailers are getting ahead of the curve and are encouraging customers to trade up on their purchases. Retailers aren’t asking customers to buy the most expensive items in their stores, but simply trying to wean customers off of budget ranges.”
Michael Ward the managing director at Harrods recently highlighted that investing in the in-store environment is a necessity for retailers if they are looking to encourage customers to trade up during such unstable economic times. Such advice does not appear to be falling on deaf ears, as all sizes of retailers flock to companies like Displaysense for the next big thing in the display world.