by Michael Arbow MBA
Partner, RSD Solutions Inc.
The trickle down from rising cotton prices is now hitting clothing retailers and of course consumers will be next. In this interesting article from the good people at the Guardian newspaper in England the view from some top retailers is that the day of the cheap T and jeans are over. Material manufacturers have absorbed some of the price increase in cotton and now it is time for retailers as they stock up on next season’s fashions. Unfortunately upward price pressure on cotton looks set to continue as floods in Queensland, Australia will add further strain on the global supply of cotton. One British fashion retailer expects clothing inflation to last till 2014. The question to be answered by management at clothing retailers and those firms in the wholesale garment industry is: will their firm’s risk strategy allow them to last till then?
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