Middle East conflict will push up prices on the High Street, warn retail chiefs
High Street giants have warned that the war in the Middle East will push up prices.
Next boss Lord Wolfson said the conflict is ‘likely to have knock-on effects on costs, selling prices and consumer demand’ outside of the region, including in the UK.
Should the conflict persist, the fashion retailer could raise its prices by between 4 per cent and 10 per cent from September, Wolfson admitted.
And he is expecting prices to begin to rise by between 1 per cent and 2 per cent from June.
The retailer estimated that higher fuel and air freight costs will add £15million to outgoings over the next few months.
HMV managing director Phil Halliday, who runs 120 music and entertainment shops, said the crisis presented both a ‘sales problem and a cost problem’.
Price hikes: Next boss Lord Simon Wolfson said the conflict is ‘likely to have knock-on effects on costs, selling prices and consumer demand’ outside of the region, including in the UK
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The music and DVD retailer’s boss added: ‘We are bracing ourselves for a slowdown.’
Referring to his customers, he warned: ‘Either their sentiment swings or they start to feel genuine pressures because interest rates go up.’
H&M, which is the world’s second-largest fashion retailer, also said that ‘current geopolitical instability in the Middle East could, if extended, result in slightly additional cost pressure’.
Chief executive Daniel Erver said: ‘We are very aware that the consumer has been under high inflationary pressure for a long period of time and increasing energy prices will have a spillover effect.’
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