WORLD RETAILINGFINANCIAL TIMES SPECIAL REPORT | Monday December 19 2011
www.
ft.
com/retailing2011 | twitter.
com/ftreports
For two years, retailers
have been grappling with
spiralling commodity
prices, which they either
absorb or pass on to customers – an...
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WORLD RETAILINGFINANCIAL TIMES SPECIAL REPORT | Monday December 19 2011
www.
ft.
com/retailing2011 | twitter.
com/ftreports
For two years, retailers
have been grappling with
spiralling commodity
prices, which they either
absorb or pass on to customers – an unpopular
option when shoppers’ disposable incomes are being
squeezed.
This has marked the end
of a decade of deflation
where consumers enjoyed
ever-cheaper clothing as
supermarkets offered products made in cheaper locations, such as China.
The
prices of some commodities
are now easing, but there
are other pressures in the
supply chain.
The price of cotton, for
example, rose for a year or
so and peaked in March
before falling sharply.
However, European and
US retailers manufacturing
in China are facing rising
wages for local workers.
While this is good for
domestic consumption –
and could help retailers
selling goods inside the
country – it is not so welcome for those selling China-made goods in other
parts of the world.
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