New Jersey brick and mortar stores compete with online retailers
December 26, 2011 by Mark
The early returns for Cyber Monday have shown another year of record-breaking online sales. One expert claims that online retailers have an advantage over New Jersey stores as they do not claim sales tax. He is working to remedy this.
The president of the New Jersey Retail Merchants Association, John Holub states that this tax loophole is the number one issue impacting brick and mortar stores. He goes as far to say that online retailers have an unfair advantage over offline stores.
A lot of New Jersey residents go to stores in areas like Cherry Hill and Hohokus to see goods in person. They then go home and buy the product online as it is cheaper. This is generally a very frustrating experience for retailers. Many of them feel they have wasted their time and energy trying to sell goods to these customers.
Retailers are joining an organization called the Alliance for Main Street Fairness. It is their goal to lobby the government for a law change. They are hoping the law will force online retailers to charge sales tax.
It is unlikely that this move will improve offline store sales. Online stores can offer cheaper products as they do not have overheads such as rent, staff salaries and electricity bills. Even if the law change were to go ahead, online stores would still have cheaper products than their offline counterparts. Brick and mortar stores should consider launching a marketing campaign. Using printing services to create flyers is an excellent way to increase brand awareness. All offline stores can do to compete with online stores is advertise their customer service skills. Those who are looking for a personal touch will prefer to deal with sales staff over a website.