Middle East will push up prices, warn retail chiefs
UK High Street giants have warned that the war in the Middle East will push up prices, writes Emily Hawkins.
Next boss Wolfson said the conflict is “likely to have knock-on effects on costs, selling prices and consumer demand” outside of the region.
Should the conflict persist, the fashion retailer could raise its prices by between 4pc and 10pc from September, Wolfson admitted.
And he is expecting prices to begin to rise by between 1pc and 2pc from June.
The retailer estimated that higher fuel and air freight costs will add £15m to outgoings over the next few months.
HMV managing director Phil Halliday, who runs 120 music and entertainment shops, said the crisis presented both a “sales problem and a cost problem”.
The music and DVD retailer's boss added: “We are bracing ourselves for a slowdown.”
Referring to his customers, he warned: “Either their sentiment swings or they start to feel genuine pressures because interest rates go up.”
Next boss Wolfson said the conflict is “likely to have knock-on effects on costs, selling prices and consumer demand” outside of the region. (photo by Daniel Harvey Gonzalez/In Pictures via Getty Images)
H&M, which is the world's second-largest fashion retailer, also said that “current geopolitical instability in the Middle East could, if extended, result in slightly additional cost pressure”.
Chief executive Daniel Erver said: “We are very aware that the consumer has been under high inflationary pressure for a long period of time and increasing energy prices will have a spillover effect.”
Comments (0)