December 26
LONDON, December 26, 2010 -
Consumers plan to panic-buy prior to the VAT increase
- Thirty-one percent of consumers plan to increase their spending before
the VAT increase in order to take advantage of pre-VAT prices
Panic shoppers spend on big-ticket items pre-VAT
- Forty-seven percent said they would spend money on home furnishings and
appliances prior to the VAT increase
- Forty-two percent of shoppers indicated that they plan to spend money
on desktop computers/laptops before the VAT increase
- Forty percent indicated they would purchase other consumer-related
electronics prior to the VAT increase
- Thirty-eight percent said they would spend extra money on clothing and
shoes before VAT
Consumers are divided when it comes to cutting back after the VAT
increase
- Fifty percent of consumers plan to cut back on spending after the VAT
increase
- Fifty percent of consumers do not plan to cut back on spending after
the VAT increase
Consumers will cut back post-VAT on nonessentials
- Thirty percent of respondents indicated evenings out (dinner and
cinema) were among the listed areas where they plan to cut back after
the VAT rise
- Twenty-nine percent of consumers will spend less on jewelry and watches
post-VAT increase
- Twenty-seven percent of consumers will cut back on home-furnishing and
appliance purchases after the VAT increase
- Twenty-five percent of consumers intend to decrease their spending on
non-computer-related consumer electronics after the VAT increase
- Twenty-four percent revealed they would reduce spending on clothing and
shoes
"In previous years, Christmas and January sales have been popular times
to purchase big-ticket items.
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