Unable to Stretch Further, Apparel Makers Raise Prices

Unless we all want to switch to a different material, it looks like we're going to have to start paying more for clothes as the price of cotton continues to increase. Manufacturers and retailers are scared to make this increase as consumer demand is still back up to where it used to be prior to the recession. Cotton prices have been on the rise for a while, but the industry was extremely hesitant to make the increase along with it. Other industries that utilize raw materials such as rubber, paper, and polyester have been noticing almost identical trends
Retailers like J.C. Penny, Jones, and Carter's Inc. are all discussing ways in which they could avoid the possibility of losing a sale because of the price increase, but there's nothing else that can be done. Retailers with a mix of lines that range in price were hoping to only have to increase prices in the higher price range of apparel, since that target market would notice it less. It'd be a valiant attempt, however, this price increase is too big and has to be dealt with in a bigger way.


Source: http://online.wsj.com/article/SB10001424052702304879604575582673135103404.html?mod=WSJ_Retailing_leftHeadlines

--Leah Stoltz