Rising costs, particularly the increase in National Insurance costs coming into effect in April, are putting significant pressure on retailers’ margins. In response, many brands are passing on these higher costs to consumers. A recent survey by The British Retail Consortium indicates that as much as two-thirds of British retailers plan to raise prices in response to increased NI costs. However, inflating prices has a negative impact on consumer confidence and spending.
Despite reports of a bumper Christmas trading season, consumer spending has been faltering ever since and retailers are very concerned about increased pressure on costs. As a result, organizations are grappling with how they can do their best not to increase prices.
