Clothes prices to rise – Next
Following third quarter declines and expectations for worse in quarter four, retailer Next has warned customers to expect double-digit price rises for clothes in 2011.
The British fashion group said that due to the rise in the price of cotton, retail price increases are likely to be at the top end of the previously-stated 5 to 8pc range in the first three months of 2011. Even further hikes could be seen in quarter two.
“Because we’ve bought most of the stock for the first-quarter of next year we can be fairly confident that our number at the top end of that range is right,” said chief executive Simon Wolfson.
“We still haven’t contracted for the second quarter and if cotton prices continue to go up then that may nudge that (range) up. The price of cotton seems to be moving very rapidly and somewhat irrationally and it’s very difficult to make a call.”
Sales at Next’s 500 stores across the UK and Ireland fell by 3.3pc in the three months to end-October 2010.