Could Car-Parking Tax Drive More Shoppers Online?

Sometime next year, shoppers on their way home from their local shopping-centre or retail park might notice a general increase in their shopping bill; maybe even an extra charge on their receipt marked ‘Direct car park charge’. This will have come as a result of plans from local authorities to charge supermarkets, department shops and shopping centres £600 per parking space in a bid to encourage more people to walk or take public transport – if they go ahead.

This charge would apply to leisure, retail and office spaces, and has sparked a debate between politicians, pundits and members of the general public over the merits of this tax, some going as far as to label it a ‘stealth-tax’ on retailers.

We wonder about the potential effect on online retail figures if these changes are put in place: if retailers decide to absorb this cost at the expense of their profit margins, we wouldn’t anticipate much change, but if the charges were to be passed on to customers by retailers (as one large supermarket chain reportedly intends to do), would they vote with their feet?

The cost to shoppers would have to be quite significant in order to trigger an accelerated growth in online retail (which is trending upwards in general). Perhaps more people will be motivated by research published earlier this year that suggests online retail is a more environmentally-friendly alternative to high-street retail, as we reported in an earlier blog post:

“The research focused on the “last mile” of delivery for small goods such as CDs, cameras, books and other items for around the home. It found that 181g CO2 was produced by a typical van-based home delivery, compared to 4,274g CO2 for travel to and from the shops by car. Meanwhile, an average bus trip by a shopper produced a 1,265g carbon footprint. In short, if a customer travels by car and buys fewer than 24 small, non-food items per trip, or fewer than 7 items when travelling by bus, home delivery is more environmentally-friendly.”

At present this situation is merely hypothetical, but The Daily Telegraph reports that Exeter City Council is one of several local authorities backing the tax. Under its plans, retailers would be taxed less if they could prove they had sourced “at least 30% of goods from within 30 miles” of the town.

Whether for or against the environmental motives that have inspired these plans, it’s likely that shoppers, in being taxed to drive to the shops, might be driven online instead, where the hassle of fighting for a parking space is (thankfully) non-existent.

Photo credit: PhotoDu.de via Flickr