WCAX.COM Local Vermont News, Weather and Sports-Vt. Retailers Ready for Sales Tax Holiday

Vt. Retailers Ready for Sales Tax Holiday

Shelburne, Vermont -- August 11, 2009

     A giant yellow banner outside the Ethan Allen Design Center is designed to get consumers to take a look inside.
     "We do anticipate not only previous customers but new prospective customers to take a look at the furniture we can provide for their homes," owner Michael Lash said.
     Lash is anticipating a big day on August 22nd, the state's sales tax holiday. Besides the banner, he's been doing radio and TV advertising and direct mail to entice people to make their selections early.
     "The strategy is to bring people in advance so we don't have chaos on the tax free day," he said. "Last year was an extremely good day for our business."
     The Vermont Retail Association says its members are hoping for another good day this year.
     "Retailers are very excited about this sales tax holiday," executive director Tasha Wallis said. "July was a difficult month for retailers. Nationally we saw about a 5 percent drop from last year so this is an opportunity to enhance the back-to-school sales."
     Wallis says many retailers are advertising extra discounts or extended hours -- some stores, like Small Dog Electronics, will be making sales until midnight, and Bucks Furniture in Wolcott will be open for 24 hours.
     "I think this tax holiday is a big deal because it will be a signal," Wallis said. "We've seen an increase in the stock market; at the same time in July, we saw consumer confidence still very low. Hopefully the response to the tax holiday will be similar to the Cash for Clunkers program where people identify a benefit and get out there and shop."
     Michael Lash says he's ready for shoppers, but not sure the sales tax savings will be enough of a benefit.
     "We're not as confident given what is happening in the economy that we're going to do as much business," he said. "We may have equally as high numbers of people coming through the store, but I think they'll be more cautious about how they spend their discretionary dollars this year."

Kate Duffy -- WCAX News