When will whinging retailers understand their business model is flawed?

A Devonport retailer is closing down and blaming online retail for her demise and the lack of GST on offshore purchases.

Devonport has always traded on its Englishness, with British street names and a quaint seaside village atmosphere.

But it’s the British-born residents that at least one retailer is blaming for the downturn in her business.

“One English lady came into the store bragging that she’d bought all her Christmas presents online at Marks & Spencer, which included free freight to New Zealand,” says Abigail’s owner, Di Francis, at her closing-down sale. “It pissed me off, really.”

It’s the latest case where increasing online sales are said to be forcing the demise of traditional stores.

This is utter bullshit. Even pommy bastard immigrants want a bargain and Devonport stores scalping their customers via massive margins isn’t a bargain.  

If you read the article right to the end you will finally get the true picture that its NZ’s antiquated distribution system with three layers all making whopping margins that is the real problem. Adding GST to online sales will do little to bring back custom to the traditional retail store.

Fact, even leaving e-books out of it, I can buy a paperback from Amazon for $14, pay the postage & packaging and have it in my hands for a total of $27. The savings get progressively better the more books that I buy. That same book retails at $49.99 in NZ retail shops. It’s the same with shoes, clothing, phones et al and its only going to get worse for NZ retailers.

On top of that I can buy things via Amazon and other online stores that are unattainable in new Zealand at all, or if they are the prices are extortionate for the same product.

Maybe removing a layer or two out of the distribution system and reducing those massive profit margins at all levels would do the trick because adding GST to online purchasing just won’t cut it.


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