Cotton Prices are Going Up, Up, Up

Tuesday 02nd of August 2011 02:58:42 AM

Cotton Prices are Going Up, Up, Up

If there is anything good to say about the devastating recession the world is still recovering from it is that there have been some incredible clothing sales ongoing that were meant to attract shoppers. But now the recession is ended, recovery is underway and prices are going up. Making the situation worse is the fact that cotton prices have been surging and thus hitting clothing manufacturer’s the hardest.

Company from discount retailers to High Street are looking for ways to keep prices low even as the price of cotton and rising production costs are cutting into profits. But it’s going to be difficult for these brick-and-mortar stores to compete with online retailers. Clothing companies selling on the internet have a lower overhead and are better able to absorb rising prices.

For example, you can buy plain t-shirts much cheaper online than you can at the department store. The brick-and-mortar stores have the problem of having to absorb these rising costs including higher labour expenses without being required to raise prices so high that customers are scared off. Online shoppers, on the other hand, know that the low overhead includes lower labor costs so rising prices in other categories have less of an impact on the selling price.

The price of cotton has almost doubled in the last year. Transportation costs have risen also. Department stores have few options open to them to hold prices down. They can increase their prices significantly or cheapen their quality or change the material from 100 percent cotton to blends. But consumers can expect to see clothing prices go up which is going to hurt families already struggling to make ends meet.

The message for consumers? Shop online for the best bargains in everything from jeans to sweaters.