Play.com has become the latest victim in the shifting retail market after confirming it will shut down its direct retail business in Jersey.
From March the firm will become a marketplace-only vendor. Play.com said in a statement: “Moving forward we are intending to focus exclusively on our successful marketplace, which is our main business area, and to phase out the direct-retail part of our business.”
The online retailer blamed the move on the scrapping of the Low Value Consignment Relief (LVCR) which allowed items less than £15, such as CDs, games and DVDs, to be sold to the UK VAT-free.
The government closed the LVCR loophole, which was thought to have cost the exchequer about £130m in lost VAT, in April 2012 in a bid to “take action to end exploitation of the rules”.