Survey: Cotton merch retails to jump10%-15% this summer

Retail Editor 3, April 13, 2011

New York - Capital Business Credit's recent survey of 70 consumer goods manufacturers and importers predict retail pricing on cotton merchandise will rise 10% to 15% this summer, especially in apparel and home.

In addition to higher pricing on raw cotton, respondents took into account the impact of higher logistical costs when evaluating retail increases. Some 62% said their logistics costs were up more than 5% - and nearly two-thirds of that group said their were passing along at least a portion of the pain to retailers.
"For manufacturers and importers the rise in oil prices (89.6 percent) as well as the conflicts in Egypt and Libya (62.5 percent) is the driving force behind this increase," said Capital Business Credit, a commercial finance company specializing in supply chain financing with a focus on the retail industry.

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