Following The Chancellor of the Exchequer Alistair Darling's decision to cut Value Added Tax (VAT) from 17.5 per cent to 15 per cent, Sir Philip Green's Arcadia Group has released a statement on behalf of a group of the high street's most powerful retailers, confirming they will pass the full VAT cut onto their customers.
The change in the VAT rate will mean huge changes for all the shops in the Arcadia group, as all shelving and register prices will need to be updated. However, Burton, Arcadia, Mosaic Fashions, Bhs, Marks & Spencer, New Look and Next all confirmed in the statement they planned to pass the 2.5% VAT cut on to customers on Monday, or soon afterwards.
The group of retailers covers some of the biggest names on the high street, including; Topshop, Topman, Wallis, Dorothy Perkins, Miss Selfridge, Evans, Burton, Bhs, Oasis, Coast, Karen Millen, Warehouse, Principles, Shoe Studio Group, Jane Norman, New Look and Next fascias.
The statement by Sir Philip said: "Following the recent announcement reducing VAT from 17.5% to 15%, equating to a price reduction of 2.13%, we are pleased to confirm that it is our intention to pass the benefit of this reduction onto our customers."
The price reduction will be given on standard rated product and will be applied on, or as soon after Monday December 1 as possible.
The statement added that this would, "allow for the complexities of implementing the changes required."
It is unclear how the price cuts will be implemented, however many retailers are expected to take off the discount at the till point rather than by re-ticketing stock.
For Burton, all mens clothing, mens suits and mens accessories will be adjusted at point of purchase as of 1st December 2008.
Burton has a long history in men's clothing and fashion, having been founded in 1903 by Montague Burton in Chesterfield. Burton now has over 400 outlets all over the UK and Ireland making it one of the country's largest sellers of casual and formal menswear, including mens shirts, jeans, jackets, knitwear, shorts, shoes, underwear and accessories.
Customers can also shop online from the Burton.co.uk website which offers free returns in-store or by post and fast delivery to their home.
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