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Trade News Archive June 08 May 08 April 08 March 08 February 08 January 08
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5th June 2008
Retailers not passing on 'full impact' of rising costs
British retailers are feeling the pinch as a result of increasingly high commodity and oil prices but they are "doing their best to absorb" the rising costs.
The British Retail Consortium (BRC) has said that retailers are not passing on the "full impact" of these rises and as such they are not being felt as strongly by consumers.
Richard Dodd, head of media and campaigns at BRC, observed that retailers of non-food goods were "discounting sharply".
He explained: "Retailers are doing their best to absorb the impact of rising commodity and oil prices and if you look at the figures, [costs] have been going up much more quickly than shop prices."
Mr Dodd went on to say that shop price inflation on non-food goods has been going down every month since November 2006.
"Non-food goods are falling because retailers are discounting sharply to get customers in because disposable income has been falling," he added.
Last month, the Confederation of British Industry warned that the cost of manufactured goods was likely to rise by as much as 36 per cent over the next quarter.
(c) 2008 Adfero Ltd.
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