Retailers 'trying to absorb crunch costs'
Jun 06 2008
British retails are "doing their best" to avoid passing on the increased costs due to rising prices, according to the British Retail Consortium (BRC).
Richard Dodd, head of media and campaigns at the BRC, says that commodities prices have gone up much more quickly than shop prices.
He explains that while food costs may be going up, prices of non-edible goods have been constantly on the decline since November 2006.
The fall in disposable income means that retailers are forced to reduce non-food prices, Dodd adds.
He says prices are 'not rising as fast as they would be if customers were facing the full impact of things like rising oil prices and rising commodity prices'.
In May, the BRC reported that retail prices have gone up by 1.8 per cent in the last year.
However, while food prices have gone up by 6 per cent, other items now cost 0.4 per cent less.
In a survey of retailers, the Confederation of British Industry found that in May, 42 per cent of firms said their year-on-year volumes had fallen.
Richard Dodd, head of media and campaigns at the BRC, says that commodities prices have gone up much more quickly than shop prices.
He explains that while food costs may be going up, prices of non-edible goods have been constantly on the decline since November 2006.
The fall in disposable income means that retailers are forced to reduce non-food prices, Dodd adds.
He says prices are 'not rising as fast as they would be if customers were facing the full impact of things like rising oil prices and rising commodity prices'.
In May, the BRC reported that retail prices have gone up by 1.8 per cent in the last year.
However, while food prices have gone up by 6 per cent, other items now cost 0.4 per cent less.
In a survey of retailers, the Confederation of British Industry found that in May, 42 per cent of firms said their year-on-year volumes had fallen.
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