Finance

Majority of retailers set to raise prices due to supply chain issues


T

he majority of retail bosses plan to put up prices on goods by the end of the year and one in 10 have already done so, according to the boss of the industry’s trade body.

Helen Dickinson, head of the British Retail Consortium (BRC), which represents the sector, said a recent poll of chief executives found that three out of five plan price rises later this year due to soaring supply chain costs.

Her comments come as the boss of Poundland’s owner told the PA news agency he has seen shipping costs jump tenfold as a result of rising global demand.

And Gary Grant, founder of toy store chain The Entertainer, said delays were affecting a number of UK ports beyond Felixstowe.

Details come despite Chancellor Rishi Sunak playing down concerns, saying there will be a “good amount of Christmas presents available” this year despite supply chain issues.

But Ms Dickinson told the PA news agency: “The supply chain issues are the priority for all businesses right now.

“It is complicated because this looks slightly different for everyone, but they all see an immediacy to this issue.

“They are thinking about Christmas. It is the most important period of the year for a retailer – takings for a non-food retailer in December are an average of 70% higher than other months.

“They are doing everything they can right now to make sure it can be as smooth as possible.”

British Retail Consortium Chief Executive Helen Dickinson said prices were having to rise in stores (Jonathan Brady / PA) / PA Archive

She added that this is proving costly: “We are already seeing inflation starting to take place.

“We surveyed CEOs and three-fifths said they were going to have to increase prices by the end of the year. Ten percent said they already have.

“It is sadly a reality when businesses are seeing every single cost, energy, wages, other things, all rising at the same time.”

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