UK retailers’ price change extension

British retailers will be given four weeks instead of two to update its price labels in stores following the decision to increase VAT again on 1 January 2010.

The British Retailer Consortium welcomed the decision as it has been particularly vociferous regarding the alleged unreasonable short turn-around time of price amendments.

The current Price Marking Order provides retailers with two weeks to adjust every price following a change in VAT. However, the BRC has been campaigning against this two week law as the timing of the necessary change directly conflicts with one of retailers’ busiest times of year – the January sales.

Director general of the BRC, Stephen Robertson, said: “This is a victory for BRC campaigning. It’s come late, but this change will give retailers more time to achieve this huge, costly exercise without undermining their key mission, especially at sales time – serving customers.

“Repricing thousands of items and updating IT systems is a major undertaking and will have to be done during most retailers’ busiest and most commercially important time of year."

Finally, Robertson warned the government not to be too heavy-handed with retailers who do not meet the required deadline. He added: “I urge the government to ensure a light touch to enforcement after the change so retailers aren’t unfairly penalised while this work is being carried out.”

Jane Parkinson, 14.12.2009