Government may not be offering a VAT-free day this Yuletide season, but at least two stores are giving their customers savings of 17.5 per cent, the same rate as the Value Added Tax.
Abed’s has been running a “VAT-free week” since Sunday, while Kooyman will be throwing its doors wide for the one day of savings today at its store in Kendal Hill, Christ Church.
Managing director of Abed’s, Eddy Abed, said this was one of the many activities for their 60th anniversary.
“The reality is that Barbadians have come to look forward to VAT-free shopping as they look forward to Black Friday shopping. So, as much as I say to you it’s an advertising promotion, we know it resonates well with our customers. We do so, obviously, to not only keep our customers very happy, but to try to attract new customers as well,” he told the Weekend Nation.
All VAT collected by stores is to be paid to Government, in spite of what is offered to customers.
“We do that hoping . . . that we have an increase in volume of sales that will counteract the loss of the 17.5 per cent. Additionally, don’t forget that this time of year we have seasonal goods that if we do not sell by December 24, we’re going to have to pack it away for ten months,” Abed explained.
“I don’t look forward to that at all. We’re much more incentivised to take a loss on it and get rid of it now so we don’t have to put the labour and the logistics into storing it for ten months.”
He acknowledged it has been a tough year.
“The market is extremely competitive this year, extremely competitive. I’ve never seen so many big and small players in the marketplace discounting as I have this year. It speaks to how tough it is out here. I mean, the sales have not come easily and readily. Retailers have had to work for them; they really have had to work for them.”
He said Abed’s will fight to maintain its market share and also try to attract new customers and remain competitive, while bringing quality and value to the market.
Kooyman’s marketing officer Charlene Mullin said the decision to offer the 17.5 per cent savings was made since last year.
“As you know, a few years ago the Government did the VAT-free holiday so that people could get an ease in their shopping for the Christmas season. Then last year, when everyone was expecting it, it didn’t happen and everybody was disappointed. So as a company, we made the decision that if the Government did not do it for 2024, we would host our own sale,” she said.
“It’s a regular discount. It’s nothing to do with VAT. We’re just matching the same percentage.”
The savings applies both in store and at the drive-thru, but not online via the website. For Independence Day, Kooyman also offered 20 per cent off.
Meanwhile, Abed said they opened a third branch, 16 000 square feet of floor space, at Welches, St Thomas, in response to numerous requests from customers over the past three to five years.
“It’s the same size as our Bridgetown store and it comes because there’s such a demand for out-of-town shopping that our Sheraton store, which is only 6 000 square feet, cannot satisfy. Equally, for many years, we’ve underserved the west of the island and the north of the island,” he said.
He added they did a study on the traffic and were quite happy with what they saw.
“We’ve been working for the last two years to get this store open and ready. It’s not 100 per cent right now; it’s probably about 85 per cent. We will get it up to 100 per cent, if not before the end of the year, certainly by the end of January; but Christmas is too important not to open.”
Representatives from the Barbados Chamber of Commerce and Industry and the Barbados Private Sector Association could not be reached for comment.
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