Two-thirds of Yorkshire retailers expect hit from spiralling interest rates and inflation over Christmas, survey finds
More than four out of ten sellers in the county are planning to buy less stock for festive shoppers because of the impact of 14 consecutive rate rises over the past two years. Inflation has also been shown to be a big issue, with 59 per cent of merchants saying they are lowering margins rather than passing on the full cost of rising prices to customers.
Six out of ten retailers were found to be sensitive to accusations of greedflation, described as passing on above inflation prices rises to boost margins.
An Inventory Planner spokesperson said: “Retailers in Yorkshire are being hit by the double whammy of spiralling interest rates and inflation in peak trading as we head towards Christmas.
“Many are reluctant to pass on the full impact of rising prices - sensitive to accusations of greedflation - which means that margins are being lowered.”
More than six out of ten shops said they were concerned about losing market share if they passed on the full cost of rising prices.
The survey also found that 70 per cent of retailers had reported that inflation had had a major impact on inventory over the past 12 months.
Just less than half of those surveyed said their cash flow position was “precarious” and 42 per cent said they had had frequent cash flow issues this year.