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Shops To Pass On £10bn Price Rises

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Something you won't hear or see reflected in figures from the liars of Threadbare Street.

http://www.independent.co.uk/news/business...es-1705432.html

Shops to pass on £10bn price rises

By James Thompson

Monday, 15 June 2009

Retailers hit by rocketing import costs will pass on about £10bn of price rises to British consumers this year, according to new research.

PricewaterhouseCoopers (PwC) said the price rises could usher in the first non-food inflation for a decade and deal a body blow to any recovery in consumer spending.

Mark Hudson, retail leader at PwC, said: "When UK consumers are watching their spending closely and consumer confidence appears to be improving, the last thing shoppers need is price rises. Since retailers' margins are so tight, these extra costs will potentially spill over into the prices consumers are asked to pay."

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Well, they can try. Non-food general scrappage scheme to be unveiled shortly?

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TV scrappage scheme

Radio scrappage scheme

Kitchen appliance scrappage scheme

Things can only get better.

Can't we just scrap Labour and be done with it ?

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Anecdotal: Was looking for a new mountain bike this weekend; shop owner said she'd just got the 2010 catalog/price list and that bikes equivalent to the current models were 15 to 20% more expensive.

Could just have been trying to push me to help clear their 2009 stock of course, but they have a very good reputation and I believe she was being honest.

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Could just have been trying to push me to help clear their 2009 stock of course, but they have a very good reputation and I believe she was being honest.

Theres one born every minute....

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Well that works out an average of £166 for everyone in the UK. For me as a family this could represent £700 extra this year, wow better get out of cash and buy a house :lol:

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Theres one born every minute....

I'm in the retail trade (own a shop).

A lot of the 2009 items were at least 10% up on the previous years RRP, this was across a range of my suppliers. Not all of them, but none certainly dropped their prices.

Edited by MattfromOxford

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Theres one born every minute....

Didn't buy and won't until I've done a bit more research. Just offering a recent personal experience that would appear to back this up.

Pretty much everything imported (...which is pretty much everything isn't it...) must go up due to exchange rates and shops will do the obvious thing and pass the cost on to the end-consumer.

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Theres one born every minute....

Afraid not. The poster was correct. I've good connections in the motor trade, and Honda have jacked up the prices of many of their motorcycles by 10% or more this year. Local dealer says he's now concentrating most of his efforts on the servicing side of the business and small capacity scooters. The price tickets on larger machines have killed most of his trade in that market. Breaking the £10k barrier for a mainstream - i.e. not specialist - motorcycle would have been considered insane a few years ago, but now, well...

Asked for a rough quote for a new starter-motor for my Honda VFR800 (11 year old bike.) The starter is tiny and can fit in the palm of your hand. Cost? £700-800 quid! Needless to say, the mint condition one I bought from the local breaker for £50 seemed a much better deal. The "old girl" is now starting sweetly once again. :)

I can't see me replacing my 11 year old bike or 12 year old car anytime soon. It's just not worth it.

Nomadd

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Retail switching from "how soon do you want this" to "how much do you want this".

More demand destruction.

Remember kids, roughly 25% of 2007 global GDP was entirely a figment of Greenspan's imagination.

2500 on the Dow.

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This isn't new news though is it ? Camera stuff has gone thru the roof recently. Sigma announced 20-40% increases. A lens I bought 2 years ago for £244 is now £379. I've probably moaned about that already. Maybe it's textiles that are going up now rather than electricals ?

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Afraid not. The poster was correct. I've good connections in the motor trade, and Honda have jacked up the prices of many of their motorcycles by 10% or more this year. Local dealer says he's now concentrating most of his efforts on the servicing side of the business and small capacity scooters. The price tickets on larger machines have killed most of his trade in that market. Breaking the £10k barrier for a mainstream - i.e. not specialist - motorcycle would have been considered insane a few years ago, but now, well...

Asked for a rough quote for a new starter-motor for my Honda VFR800 (11 year old bike.) The starter is tiny and can fit in the palm of your hand. Cost? £700-800 quid! Needless to say, the mint condition one I bought from the local breaker for £50 seemed a much better deal. The "old girl" is now starting sweetly once again. :)

I can't see me replacing my 11 year old bike or 12 year old car anytime soon. It's just not worth it.

Nomadd

Crazy strategy – especially as I thought that a large proportion of bike sales were to Born Again Boomer Bikers using MEW-cash.

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Anecdotal: Was looking for a new mountain bike this weekend; shop owner said she'd just got the 2010 catalog/price list and that bikes equivalent to the current models were 15 to 20% more expensive.

Could just have been trying to push me to help clear their 2009 stock of course, but they have a very good reputation and I believe she was being honest.

Similar anecdotal: I bought a new Dawes Super Galaxy in April 2008 (nice upper-mid-range bike). I paid £750, from a local bike shop which charged somewhat more than the cheapest online retailers.

Take a look at today's prices: http://www.google.com/search?q=dawes+super+galaxy

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Can we start a fund to raise the £2000 to scrap Labour?? I'd gladly donate.

I've just had one of my suppliers hit me with a 15% increase. This is on aftermarket automotive parts. My supplier said a lot of manufacturers have scaled back or cut production and have hiked prices to make some margin on the smaller volumes. Add in the weakness of the pound, certainly untill recently.

Having said that i'm now sat here thinking that i hadn't seen an increase since 2005!

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Theres one born every minute....

Paul and his Local Bike Shop is probably right..... Bike prices went up about 20-25 % between 2008 and 2009 for models with no spec change (talking about prpoer bikes her, not bicycle shaped objects, not sure and dont care what is happening with their prices)

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And so the inflationary pressure grows.

When will this translate into wages?

Or poverty for a large portion of the country.

3 million+ unemployed by next year will tend to keep a damper on big pushes for wage increases. Rocketing product prices will also bring into perspective just how much money people are wasting on mortgages. I mean, owning your own house is nice, but some things - like food - always come first. And just look how food prices have gone up recently... Nope, I'm afraid this country still has a lot of waking up to do in the next few years. :(

Nomadd

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Or poverty for a large portion of the country.

3 million+ unemployed by next year will tend to keep a damper on big pushes for wage increases. Rocketing product prices will also bring into perspective just how much money people are wasting on mortgages. I mean, owning your own house is nice, but some things - like food - always come first. And just look how food prices have gone up recently... Nope, I'm afraid this country still has a lot of waking up to do in the next few years. :(

Nomadd

I thought the recovery in growth would take care of this little problem?

Won't the above also effect the govt target on poverty?

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This is NOT the 70's. Wages will continue to get cut....

... and then the walls will go up.

Hello protectionism.

Salute, war.

(anyone seriously think that the UK can absorb their share of heavy industry without labour rates soaring?)

Edited by ParticleMan

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