HMV collapse – is digital killing the high street?

Nickbaker – quite right, you cannot replace the browsing experience for a lot of things you buy – CDs, DVDs, books, clothes, shoes, furnishings – and many other things. This is the downside of online shopping. The cost of sending items back when they don’t fit or aren’t suitable is set against the cost of travelling to shops. We will rely a lot more on recommendations. Some outlets will never be eclipsed by online, because of the need to go and try before you buy.

“will the ‘browsing’ experience you used to get in a record store ever truly be replicated online?”

It’s called youtube.

Well said that man.

The world changes and we – consumers and businesses – need to deal with that change. I will use high street shops where it is in my interests, balancing service and attraction against convenience, and travel and parking costs when appropriate. However I am not prepared to subsidise them – they exist to make a profit, not as charities, and their business models needs to be robust. I did a lot of online shopping very successfully (choice, price, convenience and delivery) at Christmas as usual – from smaller UK outlets as well as Amazon.

I think you have hit the nail on the head as they would say alan1h. How many companies do avoid paying their taxes and VAT I wonder. Those who do pay up cannot compete with those who don’t whatever their strategy. I also hope Which will look into this.

I believe the Channel Islands vat free concession on low value items (that’s why multiple ordersd such as printer ink they were posted separately) has now been stopped. Is that correct?

You have hit the nail on the head, it is all about jobs for the younger generation and local communities. We have a news article going out soon in our local newspaper detailing exactly that. If you would lke to comment on and support our cause then please visit our blog:
http://savethehighstreet.blogspot.co.uk/2012/12/is-brtish-high-street-is-under-attack.html

Well there is no petition as such, what I am aiming for is as you say is to encourage the high street business to engage more with the consumer and to offer as good as if not better deals.

So long as we are in recession Amazon will remain king as the consumer engages in minimum spend. So there begins the spiral downwards. Problems is governments are reactive not proactive and by the time they respond, it will be too late unless we as consumers adopt the policy of saving jobs by choosing to only buy from UK businesses. I do not want to paste our website info here otherwise it spoils this thread but if you type into Google: ‘ save the British high street ‘ you will find our domain which explains fully our intensions.

I am resolute in the belief that we need to help small businesses and at the same time to try get the British consumer to think British and to ask themselves:

1. When I hand over this money – where is it going to?
2. Is it going back into the UK economy?
3. Is it going back into my local community?
4. Will this help to save jobs

Amazon reported a turnover of 3.3 billion from the UK, that is a lot of money being moved out of the UK and into the pockets of shareholders that only care about little else. Word finances are in a very bad way and it would appear that Governments, Banks and shareholders do not have the desire for change while their cash flow remains or does remain with regards to banksters as they find every means possible to squeeze us all.

As consumers we can and should be able to changes this and ‘Which?’ is in a very position to get the ball rolling.

Bruce

Thanks for the additional information. As far as I am concerned, it is up to the high street businesses to find ways of encouraging me through their doors.

I live near a city and probably use high street shops more than most people, though I am not prepared to pay silly prices. You might find me outside a shop comparing prices on my tablet, and if the shop is not charging too much more they will get my business. My main reason for preferring shops is because it is easy for me to go back to shops if there is a problem. Look at the appalling customer service offered by certain online traders and you will see why some of us like shops.

My message is: Save the British High Street and Save Jobs. Once the high streets go then the complaint of no work will be the same as closing the door after the horse has bolted. With regards to the big players, once they have complete autonomy over retail then that is when they can (should they chose to do so) monopolise prices.
We all chose where to buy, I just want to help small businesses by charging less in order to help maximise their profits to combat the dominance of online retailers such as Amazon. Of course commerce is all about profit – you and I cannot get away from that, it’s what has made the world tick for centuries. The problem now is that there is little or no control over this undercutting maximise profit, worldwide offshore and world wide web tax avoiding mindsets from stripping the economy and high street dry. Even some domicile businesses are avoiding tax and vat by selling online. Combine this with local councils (as mentioned in your thread above) applying local car park taxation / fines and the government clawing back business rates as well as a massive welfare population that will only increase does not leave much left in the pot. It is without question that if a million businesses go under over the next 5 – 10 years that this will have a devastating effect on our economy: no jobs, no income and less tax for the government equals a huge welfare deficit larger than the UKs GDP and a very long recession.
As consumers we have a choice, live in the now without consideration for the future or spend £2 – £3 more and keep our hard earned money in the UK to safeguard jobs for our children.
Here is my solution based on the discussion: is digital killing the high street?

If I have missed something out then please add to the list or offer constructive criticism to achieve the end goal and that is: ‘What is best for Britain to prevent digital from killing the high street?’.
1. An internet licence to trade online and must be registered through companies house. This will clear up the conmen who are not paying UK taxes and vat and who are directly aiding the demise of the high street.
2. Apply profit tax to overseas businesses or a UK internet tax / licence. If they do not like it then go somewhere else. This would be far more beneficial for HMRC and UK businesses in a bid to stop the haemorrhage of billions leaving the UK.
3. Local councils to be forced by legislation to have three days per week free of any car park taxation / fines ( yes I know, but these are the real titles).
4. The government to ease business rates or to subsidise / reduce business rates to ZERO depending upon number of employees or based on profit / loss figures. The higher the profit the less they pay in business rates (this will help shops to be more competitive with their prices and to become more efficient). Or if based on the number of employees then bench marks of 2 – 5 employees would help the small business to expand before paying full tax. This would encourage businesses to take on more employees ( perfect for apprenticeship schemes).
5. Shops to become more interactive with today’s technology ( A solution Hootsmart provides ( sorry about the plug but it’s true) ).
6. Shops to stay open until 8pm – great for after work shopping, currently supermarkets are cashing in on this huge income stream which again does not help the local community.
7. Politicians to become proactive and work together instead of cheap political point scoring at the expense of ‘not thinking what is best for the UK’.

I like the comment: internet trading supplementing high street trading.
That is exactly what needs to occur and again sorry about the plug but we are developing a high street app that will do just exactly that as well as providing a platform where each small outlet shares the cost to be able to compete with large companies that have deeper pockets.

It will be a sad day if the high street is reduced to coffee shops, grocers, beauty pallor’s, solicitors, car forecourts (but even they are being forced out by the Super carports). Where will local councils get their parking revenue as less commuters travel to their local shops.

Should this happen then no doubt the next move by Amazon (bear in mind they have a tax free incentive and the purchasing power) to open Amazon leisure centre’s and really bury the high street. If not Amazon then no doubt some other tax avoidance offshore company or domicile company will. Actually, the supermarkets have already started, you can buy just about anything now.

Will we be a nation sitting at home, booking everything online delivered to our doors with 10,000,000 unemployed and governments having to ask for taxes with the superrich playing monopoly with a nations money. Maybe that is the way ahead, one huge corporation controlling the our economies… not a pretty notion at all? I worry about jobs and how the lack of will affect local communities and the country as a whole.

There is one message that needs to be heard and that is to educate the consumer to THINK about where their money is going to. Collectively the consumer can be and should be in charge. But when the day comes of having no choice at all – will that be too late? I do not think so because the path we are on now cannot possibly work in the long run.

Bruce

Rather than trying to compete with online traders, which will always have a competitive advantage even if they pay their taxes, I think we should be looking at new opportunities where the shops are the only option or have a strong advantage.

Coffee shops have done well in recent years and there is no competition from online traders. With many people sitting watching TV and drinking cheap alcohol from supermarkets, there is plenty of opportunity to entice people out of their homes. In view of current unemployment and financial uncertainty, it would be wise to steer clear of anything costly but the fact that a large proportion of the public is obsessed with communication by phone etc. suggests that there may be good opportunities to engage with them and keep the high street alive. If we just try to help struggling shops going, it could be a slow, lingering death. New ideas and investment are needed.

Richard, this VAT loophole for goods under £15 was declared illegal in March, and unless an appeal has been successful (which I have not heard) the Channel Islands can no longer avoid charging VAT. My printer ink used to come this way, posted individually to avoid VAT.