Besides higher shipping costs, retailers’ supply chains have been stressed almost to the breaking point. Fashion retailers also have to factor in the effect their price increases will have on consumers already facing escalating costs across the board. “If the wallet is fixed and other prices are going up, consumers are going to be forced to make big tradeoffs. Secondary fashion retailers selling gently-used goods also stand to benefit, particularly from luxury-leaning consumers who can’t absorb the pinch. Higher prices won’t mean higher marginsIn a final word, BDO’s Kotlyar warns that retailers can’t expect the price increases to translate into higher margins as in normal times.

Source: Forbes August 05, 2021 17:22 UTC