Representing cookshops and housewares stockists among its members, the British Independent Retailers Association (Bira) has reacted to the news that inflation rates have reached a 40-year high. The association recognises that retailers’ margins are being reduced as increases in retail prices remain below the overall inflation rate.
Inflation, which stood at 2.5% in June 2021, has now risen for nine months in a row and is expected to peak at above 11% when energy bills rise again in the autumn. Figures from the Office for National Statistics (ONS) have showed the government’s consumer prices index – which measures the price of living – was up from May’s 9.1% figure.
“Since last summer we have been warning of double-digit supply chain inflation that would result in higher prices,” acknowledges Andrew Goodacre, ceo of Bira. “However, retailers are doing all they can to limit the price increases as they recognise that the shoppers have less money to spend.” He continues: “These latest increases will, we worry, further damage consumer confidence and reduce expenditure. Furthermore, we are concerned about the rising cost of debt payments as a result in interest rate rises as many more independent retailers have increased levels of debt due to Covid.
“We feel that government needs to review the options for paying back the bounce back loans and offer more flexibility to the businesses dealing with a tsunami of cost increases.”
Top: Retailer’s margins are being squeezed as not all rising costs are passed on to consumers.
