HMV.co.uk is relocating its supply arm to Guernsey, following the lead of other retailers such as Amazon, Tesco and Asda. A loophole in the law means retailers do not pay VAT on products worth less than £18 when they are supplied from the Channel Islands.
HMV plans to pass this saving on to customers through lower prices and free postage and packing. The site will relaunch on October 10.
HMV's site is number two in the market with 7.5% share, according to internet traffic monitor Hitwise. The market leader, Play.com, has a 25% market share.
As part of the drive, HMV has developed a stamp design, featuring its Nipper the dog icon, which will appear in print ads. The work, created by Beechwood, will run in national and specialist titles in the run-up to Christmas.
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