The cost of doing business in Guernsey is already higher than the UK and Jersey, even without GST, according to Britain’s largest toy retailer.
Toy shop The Entertainer is coming to Guernsey in September, after operating in Jersey for around a decade.
However, the higher “cost to serve” here means that prices will be the same in both Bailiwicks, despite Jersey charging 5% GST on toys.
A spokesperson said customers would still get one of the best prices in the island, with 10% off when “spending £30 or more with us in one visit”.
The retailer, which operates more than 160 stores across the UK, told Express the higher costs were “related to the logistics of getting products to the island”.
‘Won’t be beaten on price’
The Entertainer is opening a new in-branch concession at Creasey’s Kids, at the bottom of Mill Street, in September.
The spokesperson said the company had an “established pricing policy for operating in low or no sales tax jurisdictions”.
“This policy has been operating successfully in Jersey for some time and helps secure our objective of being the best value toy retailer in the markets we serve,” they added.
The firm said it monitored competitors’ prices to stay competitive, and offered a “Price Promise”.
“If you find a local shop selling an item for less than at The Entertainer, take a photo, let us know and we’ll match the price there and then.
“In Guernsey, this will apply to any other shop on the island.”
Additional costs
The firm said it recognised “the lower burden of sales tax that applies in some of the areas we operate”, so offered discounts to reflect that.
However, it would also “offset additional costs that we incur in getting goods to the shop, costs of employment, property or trading costs”.
“While Guernsey offers a zero sales tax environment it also has a higher ‘cost to serve’ than our other stores.
“The net result of this is that – as well as believing our ‘ticket prices’ will already be the best on the island – we will also be offering our Guernsey customers 10% off the entire value of their purchases when spending £30 or more with us in one visit.”
Jersey charges 5% GST, including on items like kids’ clothing and toys, while Guernsey currently has no sales tax.
The company did not confirm whether prices would rise if GST was introduced in Guernsey.
