10 686
Fashion Jobs
BOOTS
Optical Consultant
Permanent · LONDON
BOOHOO GROUP
Head of Sustainability
Permanent · MANCHESTER
NEW LOOK
Buyer (915/Multiproduct)
Permanent · LONDON
FARFETCH
Senior BI Analyst
Permanent · LONDON
PUIG
Penhaligon's Campaign & Content Executive
Permanent · LONDON
PUIG
Penhaligon's Fragrance Consultant, Westfield White City (30 Hours/4 Days Per Week)
Permanent · LONDON
HARRODS
Enterprise Services Administrator
Permanent · LONDON
TAGGED RESOURCES
Sales Account Manager (Tgm1758) - £50k
Permanent · LEICESTER
TAGGED RESOURCES
Sales Account Manager (Tgm1757) - £40k-£45k
Permanent · LEICESTER
TAGGED RESOURCES
Merchandiser/Account Manager (Tgm1756) - Walsall
Permanent · WALSALL
MAC COSMETICS
Maternity Cover - MAC Cosmetics - Keyholder - 37.5 Hours
Permanent · LONDON
MAC
MAC Cosmetics - Keyholder - House of Fraser - 37.5 Hours
Permanent · GLASGOW
PEOPLE MARKETING
Junior Account Manager
Permanent · LONDON
N BROWN
Digital Product Manager
Permanent · MANCHESTER
PENTLAND
Senior Global Retail Marketing Manager
Permanent · NOTTINGHAM
THG
People Operations Business Partner - Ftc
Permanent · MANCHESTER
MAC
MAC Cosmetics - Keyholder - House of Fraser - 37.5 Hours
Permanent · GLASGOW
NADINE MERABI
Product Director
Permanent · MANCHESTER
TK MAXX
Loss Prevention Officer
Permanent · CAMBERLEY
HENKEL
Indola Business Development Executive - North UK, m62 Corridor
Permanent · HEMEL HEMPSTEAD
STOCKX
Marketing Manager
Permanent · LONDON
360 TALENT LONDON
Quality And Service Assurance Manager 
Permanent · HOUNSLOW
By
Reuters API
Published
Dec 4, 2018
Reading time
2 minutes
Download
Download the article
Print
Text size

UK retail needs internet tax 'shock', says Sports Direct boss

By
Reuters API
Published
Dec 4, 2018

The British government should levy a tax on retailers with online sales accounting for more than 20 percent of revenue to save traditional shopping districts, the billionaire boss of Sports Direct told lawmakers on Monday.



Ashley also called on local councils to offer retailers free business rates (property taxes) for five years if every pound of free rates was matched by retailer investment in the site - Reuters


Mike Ashley said the move would be "a massive electric shock" for the sector, encouraging retailers to invest in physical stores.

“You have to tax the internet for the good of the high street, the good of the all," Ashley told the lower house of parliament's Housing, Communities and Local Government Committee.

"If I’m a retailer ... I will make sure not to pay the tax, I keep 80 percent of my revenues going through the high street," he said, noting that Sports Direct has a 400 million pounds internet business.

He said that, if the new levy came in, it would make sense for Sports Direct and retailers in general to invest in and keep stores open. With annual revenue of about 3.36 billion pounds, Sports Direct currently would not be liable for the tax Ashley proposed.

Ashley also called on local councils to offer retailers free business rates (property taxes) for five years if every pound of free rates was matched by retailer investment in the site.

The parliamentary committee is conducting an inquiry into the future of traditional retail districts after a torrid year for the sector.

A string of British store groups have gone out of business or announced shop closures this year as they battle subdued consumer spending, rising labour costs, higher property taxes, growing online competition and uncertainty over Brexit.

VANISHING STORES

Toys R Us UK, Maplin and Poundworld have all gone bust, while combined store closures from Marks & Spencer, Debenhams, Mothercare and House of Fraser are in the hundreds.

A net 1,123 stores disappeared from Britain's top 500 high streets in the first half of 2018, research by PwC showed last month.

An estimated 40,000 people have been affected this year by the sector's upheaval, the BBC reported on Monday.

In August Sports Direct snapped up the 59-store House of Fraser department store chain for 90 million pounds after it collapsed into administration.

So far Ashley has secured the future of about 23 stores. He has blamed the closure of others on landlords for not offering more favourable terms.

Ashley told lawmakers his target was to keep 80 percent of House of Fraser's stores open.

"I'm not Father Christmas, I'm actually, I believe, a very fair guy," he told lawmakers.

In October Sports Direct purchased specialist bicycle retailer Evans Cycles for an undisclosed sum immediately after its parent went into administration, but Ashley said that only half of the chain's 62 stores would avoid closure.

Ashley's parliamentary appearance was not his first. In 2016 he was summoned to explain Sports Direct's working practices and conceded it had effectively paid some warehouse staff below the statutory minimum wage.

© Thomson Reuters 2024 All rights reserved.