Jewish retailers torn on GST for online shoppers

WHILE some of Australia’s biggest retailers are lobbying the Federal Government to impose GST on online purchases from overseas, in fact, it is the smaller retailers feeling the brunt of the pain.

Australia’s Jewish community has a long history of working in retail – one of Australia’s most prominent shopping brands Myer was established by Russian Jew Simcha Baevski Myer.

However, the nature of the high street is changing as the soaring Australian dollar and increasing comfort with online shopping push customers to the internet. And this phenomenon is leaving Jewish retailers feeling the pinch.

Sydneysider Brandon Conway has owned The Bra Shop in Warringah Mall for 20 years, but he is being forced to rethink his location.

“The concern that I can see with the smaller retailers is that you’re paying a premium to be in a major shopping centre, but the value of being in the shopping centre is being continually diminished,” Conway said.

He said it is also concerning that some people go into stores and find the product they want, but then go online to find it at a better price.

“Some people will do that and some people won’t, but I’m sure that enough people will do it to take away a bit of your business.”

But Conway has rejected the idea – supported by one of Australia’s most prominent Jewish retailers, Solomon Lew – that adding GST to online purchases under $1000 is a viable option. “In principle, you probably have to say yes [to adding GST], but I mean in practical terms, how would they do that? How would they administer that?” he asked.

At the other end of the spectrum are Jewish businessmen Gabby and Hezi Leibovich.

The brothers run Catch Of The Day, one of Australia’s top online shopping sites, which has a different special offer each day.

According to the company, they sell a product every 14 seconds  and once sold $1 million worth of  televisions in an hour.

During the last week of 2010, Catch Of The Day claims to have had more hits than the combined websites for large retailers Big W, Myer, Target, David Jones and Deals Direct, another online store owned by Jewish businessman Paul Greenberg.

But Melbourne’s Julia Deuel, from Eyedentity Optometrists in Melbourne’s Elsternwick, said buying online has its pitfalls.

“You might save a bit of money, but you lose the customer service, warranty and after maintenance,” Deuel said.
Despite a growing trend for spectacle-wearers to check out the offerings in local stores and then buy the same pair for cheaper from overseas, Deuel said her business is yet to be hit hard by the online trend because people value good customer service. “If something goes wrong, they won’t get any support, but we can help our customer with adjustments and repairs and any other after-sales support they need.”

Another increasingly popular online purchase is Judaica and Jewish books. With online sales and parity between the Aussie and US dollars, huge savings on siddurs and religious texts can be found.

However, Shlomo Goldschmiedt from Golds World of Judaica in Bondi Beach said he has never even looked for Jewish products online. But, he added, the Government should add GST on all purchases.
“It is not a level playing field and so it simply isn’t fair,” Goldschmiedt said.

JOSHUA LEVI

Caption: Sydneysider Brandon Conway.