The full impact of the weaker value of sterling on shop prices has yet to be felt but this is set to change as hedging arrangements begin to unwind, fashion retailers have warned.
Retailers will have to take extra risks to avoid passing on the full impact of sterling’s fall to consumers, and handing rivals a price advantage, Next boss Lord Wolfson told delegates at a conference in London.
“Switching a supplier in clothing is always risky, especially a supplier you haven’t used before or used in volume,” he said, according to The Times. “When you get an economic shock these risks are worth taking.”
Outgoing Marks & Spencer chairman Robert Swannell said: “Most of us were hedged to a greater or lesser extent so most of this is still to come.”