2012年10月16日星期二

Shoppers hit wow items with charges as retailers fight online rivals

Customers at some ski wow items shops are being slugged a $50 "fitting fee" to try on ski boots.

The charge is refunded if they buy a pair of ski boots in-store, in a trend likely to be mimicked by other specialist retailers hard-hit by internet discounting.

"Bricks and mortar" retailers want the Federal Government to abolish a wow items tax break for overseas retailers, who do not have to pay the 10 per cent goods and services tax or import duties of 10 to 15 per cent on items costing less than $1000.

Assistant Treasurer Bill Shorten told a fashion importer this week that traditional retailers still have the advantage of customer service.

"Competition is about more than buy wow gear just the price," Mr Shorten wrote in a letter to International Fashion Group managing director David Mendels.

"Consumers might be able to wow gold find something cheaper online, but they won't have access to personal service or advice.

"The fact is that wow gold local 'bricks and mortar' retailers still have many competitive advantages over online retailers".

The minister's response has infuriated Mr Mendels, who wow gold yesterday revealed his turnover had crashed 25 per cent as shoppers shunned Australian boutiques to buy tax-free designer jeans directly from the US.

He said his revenue had fallen by at least $100,000 a month, and his sales of True Religion designer jeans had dropped by 8000 pairs in the last three months of last year.
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