New Zealand retailers expect surge in big-ticket sales(69801)

Big-ticket buying rush predicted before GST hike

Retailers are predicting a rush in big-ticket sales before the GST rise announced in Thursday's Budget takes effect in October.

Noel Leeming Group general manager of merchandise, Jason Bell, says historical trends show people buy before a tax increase.

He says it will not necessarily increase the market but will stimulate sales, and people will bring purchases forward.

New Zealand Retailers' Association chief executive, John Albertson, also says the impending GST rise will probably encourage people to bring forward the purchase big-ticket items.

Both say there will be a big marketing push to promote pre-October purchasing of high-end products.

'Headache' for councils

Napier City Council chief executive Neil Taylor says while businesses will find it easy to pass on the GST increase to customers, it will pose a headache for local government.

Mr Taylor says there are implications for city and district councils which have already approved their annual plans.

Mr Taylor says careful consideration will have to be given in case the change results in a budget deficit at the end of the financial year.

He says the council could delay projects, but that would be difficult if they have been promised as part of a community-approved annual plan.

New Zealand retailers expect surge in big-ticket sales

Related News

Photos

trade

market

finance