Shoppers confronts a 50:50 possibility of a abrupt bang in prices tomorrow as the retailers stroll on a tightrope flanked by steering away customers and tolerating bulky GST costs.
Few shoppers have gushed towards purchasing the big-ticket stuffs, just like kitchen sets, prior they turned hundreds of dollars costlier tomorrow. Being cautious of the price-sensitivity in the consumers poise amidst in a taut economy, the retailers, yesterday depicted a blend of anxiety, exhaustion and privacy as they equipped for GST to inclination to 15 per cent.
The inclination shall add up to 2.2 per cent to the cost of goods, few out of which shall be straight away moved on to consumers and few engrossed in profit margins.
According to Briscoe Group managing director Rod Duke, it's the fiend or the profound blue sea. One is completely scared of distressing the customers; however it slashes margins to not do it.
Although Briscoes, the one whose average sale is just approx $50, will be not as much exaggerated than shops that sell costly goods. The GST increase will append only above $1 to a $50 item, nevertheless it will adjoin approximately $100 to a 150cm plasma television.
As per Noel Leeming, chief executive John Journee, it's a 50:50 probability one might pay more.
