The Department for Business, Innovation and Skills Select Committee
wants views from industry and the public on five key issues. That includes
evidence on progress made implementing the Portas review of town centres,
which began almost two years ago, and opinions on 'the impact of online sales
and direct sales on High Street retailers'.
The Select Committee will then hear views from selected industry
figures and lobby groups over the coming months before reaching its
conclusions.
Key representations expected from High Street retail groups have
already begun to emerge. Small shops groups argue that, while High Street
retailers are taxed heavily through business rates and burdened by rents,
online retailers are not. Retail lobby groups will suggest that online
retailers such as Amazon, Ebay and Asos have an easy time because of this light
touch. They are expected to demand a 'level playing field' on tax and insist a
business rates system based on property in an online world is unfair and
antiquated.
Other areas for the inquiry will include the continuing growth of
out-of-town shopping developments, planning laws and restrictions to town
centre shopping such as high car parking charges.
Opinion: Why this inquiry has received so little publicity is difficult
to fathom. The announcement of March 13 was barely picked up by news services –
on or offline - but its effects could be huge. Select Committees tend to act
where ministers fail to do so (the last BIS investigation into the grocery
industry in 2011 set up a watchdog in January to stop supermarkets bullying suppliers).
The dividing line between online and High Street retail is actually a large
grey area filled by those relying on both. The internet may even be saving some
traditional store-based retailers from collapse.
But the BIS inquiry into the retail sector is likely to highlight
the disparity between a vibrant online sector and beleaguered, declining High
Street shops. Politicians will act and such action is unlikely to favour online
retailers.
The effects of this little known inquiry could be felt across the
online industry for years to come.
No comments:
Post a Comment