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Santa Wars: Retailers Vs. Online Shops

November 15th, 2011 by flanews

Retailers are optimistic this holiday shopping season, predicting a modest 3.5 percent increase in sales. But online sales are expected to skyrocket by as much as 15 percent. As Whitney Ray tells us, instate retailers are embracing the trend, they just want to make sure people buy from online shops with locations in Florida.

The Florida Retail Federation is asking Santa for higher sales this holiday shopping season. Retailers are predicting a 3.5 percent increase, and say the average Florida shopper will spend 700 dollars on gifts. With that in mind stores are putting up their holiday decorations and marking down prices. But fewer people may actually see them.

A growing number of purchases happen after people leave the store. Close to one in five holiday purchases, or 20 percent, is made over the internet and that number is growing five percent a year. Michelle Roberts plans to do half her shopping online this year.

“I look for stores where I can return items, so I shop there online and bring things back if I need to,” said Roberts.

The online shopping trend is rising amid increased efforts by Florida business groups to make online shops without stores in Florida collect sales tax. Right now major online retailers like Amazon.com don’t have to collect the tax.

Florida Retail Federation President Rick McAllister wants shoppers to look for online stores with locations in the state.

“You don’t want to be a tax scofflaw. So my suggestion is to pick those retailers, shop online, but find the ones that collect your sales tax for you,” said McAllister.

Their hope is to turn Ho, Ho, Ho into jobs, jobs, jobs this holiday season by keeping more money in state. Retailers say online shops that don’t collect sales tax have an unfair price advantage. But what shoppers may not know is, they still owe the tax even if the store hasn’t added it to the price.

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