Positive signs for town centre stores

MANY chain stores are absorbing the VAT increase

NOT every retailer in Oldham is increasing prices despite yesterday’s VAT hike.

Numerous town centre stores were quick to publicise that they won’t be adding the 2.5 per cent tax rise to make VAT 20 per cent.

And the good news comes after many shops reported their best ever New Year sales figures as Oldhamers rushed to snap up bargains.

Spindles and Town Square Shopping Centre manager Mike Flanagan said: “It’s been absolutely fantastic. We have had one of the best periods between Christmas and New Year we have ever had. Numbers were high every day last week. We are very pleased with how Christmas has been. We were certainly up on footfall in the number of people in the car park and a number of retailers are saying it’s the best we have had.”

It followed shoppers turning out in force on Boxing Day to bag bargains and drive some stores to top the region’s sales figures.

The VAT hike was condemned by Labour leader Ed Miliband during by-election campaigning in Oldham. But Chancellor George Osborne insisted it was a tough but necessary step to economic recovery and would raise £13 billion to help deal with Labour’s “record debts”.

Shops in Oldham displaying “No VAT increase” signs yesterday included Sports Direct, Cancer Research UK, Bright House, Home Bargains and Phones 4U.

Shops are currently allowed to add the increase on at the till — leading to fears that it could cause disputes over prices and lengthy queues.

Mr Flanagan said he was unsure what effect the rise will have on retailers and shoppers, adding: “Everyone is guessing, we just have to wait and see. Some retailers will absorb the VAT increase and some won’t.

“I think this time of the year slows down anyway for obvious reasons but I’m hopeful for a good start to the year, certainly if the last few days are anything to go by.”

Town centre manager Sara Hewitt said strong sales at Christmas had carried on into the New Year sales.

She added: “Shops have been doing well. Some have done really well, though others have not, but Oldham is not doing bad and is holding its own. We had decent footfall over the town centre at Christmas.”