Penneys warns prices might rise for autumn and winter clothes
A sad day.
Penneys has warned that prices are set to increase on their autumn and winter collection as costs for global businesses continue to rise.
The budget clothing store will be making "selective" rises in their range after they avoided the pressure of inflation until now as global exchange rates fell in its favour.
AB Foods, who owns Primark/Penneys, said that the US dollar is strengthening and inflation is soaring, which will force the changes.
Chief executive George Weston said: “Inflationary pressures are such that we are unable to offset them all with cost savings, and so Primark will implement selective price increases across some of the autumn/winter stock.
“However, we are committed to ensuring our price leadership and everyday affordability, especially in this environment of greater economic uncertainty.”
Businesses across the UK have also seen this occurring as they are now rethinking their prices, witht he cost of energy going up immensely as well as the costs of the raw materials and staff also soaring.
Some businesses have passed on these costs to customers but are aware than this is now likely to discourage people from shopping in these industries.
While there are set to be price rises, Primark expecrs to see their sales increase due to the fact they are opening more stores and expanding their selling space by 10% compared with the end of the 2019 financial year.
“As a consequence, total sales for Primark in the second half are anticipated to be ahead of the second half of the 2019 financial year, which was pre-Covid,” AB Foods said.