Clothing industry latest to take price hike, shoppers can expect higher prices due to material costs - New York Daily News |
| Posted:  Stapleton/Landov Shoppers can expect the price of clothes to go up as the cost of cotton has doubled this year.Shoppers looking to update their wardrobes, or their kids', may find their money won't stretch as far. In fact, clothing prices are expected to rise about 10% in coming months, one expert said. As the world economy recovers and demand for goods rises, a surge in the cost of material and labor is squeezing retailers and manufacturers who've run out of ways to cut expenses. To the benefit of shoppers eager to save a buck, clothing prices dropped for a decade as tame inflation and cheap overseas labor helped hold down manufacturers' costs. During the recession, retailers and clothing makers cut frills and experimented with fabric blends to keep prices low. Levi Strauss, VF, JCPenney, Nike and designer shoe seller Steve Madden all plan increases. More specifics are expected when Penney, as well as Abercrombie & Fitch, report financial results later this month. "All of our brands - every single brand - will take some price increases," said Eric Wiseman, CEO of VF, which makes clothes for The North Face, Nautica, Wrangler and Lee brands. Higher costs also will affect how clothes are made. Clothing makers are using more synthetics like rayon and designing jeans with fewer embellishments. Shoppers also will have fewer color choices. Cotton has jumped to a 150-year high, hitting $1.90 per pound on Friday. That's more than double the price a year ago and just ahead of the $1.89 record during the Civil War, according to the International Cotton Advisory Committee. The price of synthetic fabrics has jumped roughly 50%. Retailers are trying to figure out whether the consumer demand that gave them strong holiday sales will last. The fear is higher prices will nip it in the bud. Stores that cater to low- and middle-income shoppers will have the hardest time passing along price increases. "We have been so used to deflation for years and years," said David Bassuk, managing director in the retail practice of AlixPartners. "Customers are going to be surprised." This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php |
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