VAT Watch - H&M's prices won't rise in January
Last week we asked for your help in keeping an eye on retailers when VAT increases on 4th January. There's no doubt that plenty of businesses will take the opportunity to ramp up their prices and blame the increase - as the shysters at Fitness First have already done.
One retailer has decided to do right by the customers - H&M. We went to town on them last year, when VAT was lowered to 15%; H&M manually passed on the discount for a couple of months but then continued to charge at the higher rate of 17.5%. When VAT was increased back to 17.5% at the beginning of 2010, H&M told customers their prices would not increase and that H&M would pay the difference themselves – even though they were already charging customers the full 17.5%.
There's no reason why H&M can't increase their prices come 4th January, but for whatever reason they've decided not to. Did H&M raise the prices in the past few weeks so they can milk the PR cow come January? Or is the management feeling flush and revelling in Christmas spirit? Who knows. Thanks to avid Bitterwallet reader Lawrence for passing on the good news: