The VAT cut on July 1 is intended to lure customers into business and thus boost consumption in the corona crisis. But do the traders pass the savings on and lower the prices? The ZDF magazine “Wiso” did research.
“Wiso” has observed around 3,000 products and 1.8 million price points in online retail for weeks to evaluate the impact of the VAT reduction. The result: only around a quarter of all observed offers fell due to VAT, almost three quarters remained the same or even became more expensive. “WISO” reports today, July 6, at 7:25 p.m.
Samples in stationary retail gave another picture: there the large department stores, hardware stores and electrical retailers lowered prices accordingly. The head of the study, Clemens Vest, sees himself confirmed that, in contrast to brick-and-mortar retail, online retail was not dependent on the impulse to cut VAT: the dynamics are high anyway, so prices always fluctuate strongly. Nevertheless, experts such as the Professor for Marketing and Strategy at WHU Vallendar, Martin Fassnacht, expect retailers to benefit from the reduction in VAT: “Lowering the price is something positive for the consumer. This can lead to consumption being stimulated, ”says Fassnacht in“ Wiso ”.
For the study, a random shopping cart was put together from around 3,000 products in various categories such as: hardware store, electronics, white goods, kitchen appliances, cosmetics, toys etc. Percent, so a minimum reduction of 2 percent was recognized as a VAT-related price adjustment.